2019 origins by lender – Commercial Property Executive
It was set to be another banner year for mortgage bankers, but creations began to decline year over year in March, according to MBA’s Jamie Woodwell.
Origins by lender (in millions)
Commercial and multi-family mortgage bankers closed a record $ 600.6 billion in loans in 2019, according to the Mortgage Bankers Association’s Mortgage Bankers Association’s 2019 annual origination volume.
This year was about to be close to another banner year. That was before the COVID-19 pandemic spread across the United States and wreaked havoc throughout the economy. Substantial job losses, financial market volatility and general uncertainty have impacted financial markets for commercial real estate since March. In the first quarter, commercial and multi-family mortgage initiations ended up down 2% compared to the same period last year. It is very likely that activity will decline even further in the second quarter.
Thinking back to last year, commercial bank portfolios were the main source of capital for loans issued in 2019, accounting for $ 179.8 billion of the total (30%). The second most active investor group was GSEs with a total of $ 139.1 billion (23% of the total), followed by issuers CMBS, CDO and ABS with a combined activity of $ 118.4 billion ( 20% of the total) and life insurance companies. and pension funds with $ 86.1 billion (14% of the total). Lenders said they closed $ 39.0 billion (7%) in loans for REITs, mortgage REITs and investment funds, $ 15.6 billion (3%) for FHA / Ginnie Mae and 3, $ 1 billion (1%) in loans for credit companies and specialist finance companies. A total of $ 19.5 billion (3% of total) in commercial / multi-family loans entered into as a lender is classified as “other types of investors” by participants.
In terms of property types, multi-family properties had the highest volume of mortgage bank origins at $ 287.2 billion, followed by office buildings, industrial properties, retail, hotels / motels and health care. The first liens represented 94 percent of the total dollar volume closed last year.
MBA is closely monitoring the impact of the COVID-19 pandemic on its members and the industry.
Jamie Woodwell is Chief Economist for the Mortgage Bankers Association.