The Mortgage Bankers Association today released its quarterly commercial and multifamily mortgage loan originations survey for the second quarter of 2004, showing continued growth in mortgage originations.

Commercial mortgage bankers originated $33.2 billion, up by 17.4 percent ($4.9 billion) from the same quarter in 2003 and up 54.1 percent ($11.6 billion) from the first quarter of 2004. The large increase from the first quarter reflects the traditional cycle of low levels of first-quarter originations followed by a pick-up in the second quarter.

“The second quarter extends a period of record capital flows to the commercial and multifamily real estate markets, and sets 2004 on pace to exceed 2003’s record origination volumes,” said Doug Duncan, MBA’s chief economist and senior vice president.

Originations for office and retail properties increased by $2.3 billion and $1.7 billion, respectively, compared with the second quarter of 2003. Office property originations increased by 41 percent and retail property originations increased by 38 percent compared with the same period last year. In contrast, multifamily loan originations decreased by 4 percent compared with last year (the second straight quarter of multifamily declines). Origination levels among investor groups, such as commercial banks, Fannie Mae/Freddie Mac, pension funds, Federal Housing Administration (FHA), life companies and others also increased. Commercial mortgage-backed securities (CMBS) conduits and credit companies showed declines in origination volume.

Second-quarter 2004 originations were $11.6 billion or 54 percent higher than originations in the first quarter of 2004, largely reflecting the traditional cycle of low-level first-quarter origination volumes followed by a pick-up in the second quarter. The quarter-over-quarter increase was broad-based, and included increases in every property and investor type. The quarter-over-quarter increases included an 88 percent increase in multifamily lending and a 47 percent increase in office lending. On the investor side, originations for pension funds, Fannie Mae/Freddie Mac, FHA and commercial banks all increased by more than half from the first to second quarter.

The Mortgage Bankers Association is a national association representing the real estate finance industry.

***

What’s your opinion? Send your Letter to the Editor to newsroom@inman.com.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Don’t miss out! Inman Connect Las Vegas starts tomorrow and you can catch all the excitement with a virtual ticket.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription