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December 22, 2014

Commercial, Multifamily Lending Expected to Climb This Year

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Commercial, Multifamily Lending Expected to Climb This Year

The continued improvement in the commercial real estate market is reflected in a Mortgage Bankers Association (MBA) forecast that commercial and multifamily lending will increase 11 percent from last year, with origination volume reaching $254 billion in 2013. 

The industry group projects that commercial and multifamily loans outstanding will grow 2 percent on an annual basis to $2.4 trillion. 

"Despite a 21 percent decline in the volume of commercial and multifamily mortgages maturing this year, we expect origination volumes and the amount of mortgage debt outstanding will both increase," said Jamie Woodwell, the Mortgage Bankers Association's vice president of commercial real estate research.

MBA's Jamie Woodwell also notes that Fannie Mae, Freddie Mac, the FHA, and life insurers "continue to have strong appetites" for lending, which the organization expects to be enhanced by rising demand for securities backed by commercial mortgages.

Source: "Commercial, Multifamily Lending to Increase 11 Percent in 2013" American Banker (02/05/13)

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