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Commercial Mortgage Originations Finish 2020 with 26% Lower Tally
Commercial and multifamily mortgage bankers closed $441.5 billion of loans in 2020, according to the Mortgage Bankers Association’s 2020 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation. The tally was 26% lower than the record $601 billion reported in 2019.
Jamie Woodwell, MBA’s VP of commercial real estate research, noted that the dropoff of origination volume occurred “as the COVID-19 pandemic disrupted the economy and created increased uncertainty. The property types most impacted by the pandemic—lodging and retail—saw the largest declines in originations, while those in which investors and lenders had the greatest confidence, particularly multifamily, held up better.
“The source of capital also mattered, with government-backed loans from the Fannie Mae, Freddie Mac and FHA hitting new record-highs in volume,” he continued.
Multifamily properties saw the highest origination volume last year at $272 billion. Fannie Mae and Freddie Mac were the largest capital source at $164.1 billion.
