Commercial mortgage originations increase during 2011

Commercial mortgage originations increased in 2011.

The Mortgage Bankers Association recently released a report which showed that commercial property management companies took out mortgages at a significantly higher rate in 2011 than the year before.

The 2011 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation showed that mortgage originations increased 55 percent during the year. This brought the year's total loan figure to $184.3 billion. The Federal Housing Administration, along with Fannie Mae and Freddie Mac, experienced $57.6 billion in originations, while pensions and life insurance companies funded $49.3 billion.

"Commercial mortgage lending continues to rebound from its 2009 lows," said Jamie Woodwell, vice president of commercial real estate research. "Originations for life companies, Fannie Mae, Freddie Mac and FHA were all strong, and banks, commercial mortgage-backed securities issuers and others also saw strong growth."

The report added that retail properties had the largest increase percentage-wise when it came to property types. Multifamily properties and industrial properties came in second and third. The volumes for the FHA and the two government-sponsored enterprises were all new records during the year.

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