APARTMENT NEWS

ARCHIVES 2009:

Commercial, multifamily mortgage originations fall
Charlotte Business Journal - by Tierney Plumb
Tuesday, February 10, 2009

Commercial and multifamily mortgage loan
originations plummeted 80 percent in the
fourth quarter of 2008 compared with a year
earlier, according to the Mortgage Bankers
Association.

The year-over-year drop was seen across all
property types and investor groups, according
to the Washington, D.C.-based association that
represents the real estate finance industry.
Originations for the whole year were down
about 60 percent from 2007 levels.

“Commercial and multifamily mortgage lending
slowed to a trickle in the fourth quarter,”
says Jamie Woodwell, vice president of
commercial real estate research at the
association. “Between the worsening economy
and the continued credit crunch, lenders are
extremely cautious about lending and borrowers
are likely to hold onto the assets and the
loans they already have.”

Drops in total commercial and multifamily
mortgage originations were led by a 98 percent
fall in commercial mortgage-backed security
conduit loans, followed by an 86 percent drop
in loans for commercial-bank portfolios and 73
percent decrease in loans for life-insurance
companies.

When compared to the fourth quarter of 2007,
the overall 80 percent decrease included the
following:

* 99 percent decrease in loans for hotel properties

* 82 percent decrease in loans for retail properties

* 76 percent decrease in loans for industrial properties

* 72 percent decrease in loans for office properties

* 62 percent decrease in multifamily property loans

* 47 percent decrease in health care property loans

source: Charlotte Business Journal