According to a recent report from the Mortgage Bankers Association (MBA), the volume of commercial and multi-family loans closed by mortgage bankers fell significantly in 2020.
The report found that mortgage bankers completed commercial and multi-family loans worth $ 441.5 billion in 2020 – 26% less than the record high of $ 601 billion in 2019.
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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 hotels / motels.
Meanwhile, MBA numbers showed that state-sponsored companies (Fannie Mae and Freddie Mac) were the leading source of funding for loans in 2020, responsible for $ 164.1 billion. Depositories was the second highest volume at $ 109.3 billion, followed by life insurance companies and pension funds, commercial mortgage-backed securities issuers (CMBS) and the Federal Housing Administration (FHA) / Ginnie Mae.
“Commercial and apartment building borrowing and lending decreased by a quarter in 2020 from the record year of 2019 as the COVID-19 pandemic disrupted the economy and increased uncertainty,” said Jamie Woodwell, vice president of Commercial real estate Research at the MBA. “The types of property hardest hit by the pandemic – housing and retail – saw the biggest drop in origins, while those that investors and lenders had the most confidence on – especially apartment buildings – were better off. The source of capital was also important. Government-sponsored loans from Fannie Mae, Freddie Mac, and the FHA hit new record highs. “