Commercial Mortgage Bankers in U.S. Originated $441.5 Billion in 2020
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That was 26 percent less than the record high of $ 601 billion in 2019
Commercial Real Estate / Multi-Family Financing, Mortgage Bankers Association’s annual Origination Volume Summation 2020, commercial and multi-family mortgage bankers completed $ 441.5 billion in loans in 2020. Commercial and multi-family mortgages completed last year of $ 441.5 billion were down 26 percent from the record $ 601 billion reported in 2019.
“Commercial and apartment building borrowing and lending in 2020 decreased by a quarter from the record year of 2019 as the COVID-19 pandemic disrupted the economy and increased uncertainty,” said Jamie Woodwell, MBA vice president of commercial real estate research. “The property types hardest hit by the pandemic – housing and retail – saw the biggest drop in origins, while those that investors and lenders had the most confidence in – especially apartment buildings – did better. Secured Loans from Fannie Mae, Freddie Mac and FHA hit new record highs in volume. “
Apartment buildings had the highest volume of mortgage lenders last year at $ 272.0 billion, followed by office buildings, industrial real estate, retail, healthcare, and hotel / motels. The first mortgages made up 98 percent of the total closed dollar volume.
The government sponsored companies (Fannie Mae and Freddie Mac) were the leading source of capital for origination loans in 2020, accounting for $ 164.1 billion of the total. Custodians were the second highest volume at $ 109.3 billion, followed by life insurance companies and pension funds, commercial mortgage-backed securities issuers (CMBS) and FHA / Ginnie Mae.