Industry News

‘Capital disruptions’ stifle commercial, multifamily loans

MBA: Q4 decline in originations driven by CMBS troubles

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Commercial and multifamily mortgage bankers' loan originations sank by double digits in the fourth quarter of 2007 when compared to a year earlier, the Mortgage Bankers Association reported today in a quarterly survey. Total fourth-quarter originations dropped 16 percent below the level recorded in fourth-quarter 2006, with the decrease seen across most property types and investor groups, according to the MBA's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. "The slowdown comes most directly from disruptions in the capital markets, although a few remaining large portfolio transactions continued to buoy the numbers," said Jamie Woodwell, MBA's senior director of commercial/multifamily research. "It's important to note that while commercial/multifamily origination volumes have slowed, the underlying fundamentals of commercial and multifamily properties, loans and bonds generally remain quite strong." Decreases in total commercial/multifamily mortgage...