The Mortgage Bankers Association (MBA) issued commercial loan numbers for last year in it’s recent “2013 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.”According to MBA, commercial and multifamily mortgage bankers closed $358.5 billion in loans. Commercial banks and savings institutions were the leading investor groups with $100.5 billion. CMBS (commercial mortgage-backed securities) had the second highest volume, $79.8 billion, followed by life insurance companies and pension funds; Fannie Mae; REITS, mortgage REITS and investment funds; and Freddie Mac.
“For the past several years, investors have been waiting for lenders to make moves and be more active,” said Jayme Nabors! co-founder of NBI Properties. “Last year was finally the turning point when we started seeing more banks excited about commercial lending.”
According to the MBA report, multifamily properties had the highest origination volume at $136.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 97 percent of the total dollar volume closed. Driven in part by increased coverage, the report’s dollar volume for commercial and multifamily mortgages closed in 2013 was 47 percent higher than the volume reported in 2012. Among repeat participants, the dollar volume of closed loans rose by 22 percent.
Nabors added that he expects commercial lending on the Emerald Coast to remain on the upswing due to rising property values and low interest rates.