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Commercial/Multifamily Originations Rise 33% in 2012

Commercial and multifamily originations rose 33 percent to $244.2 billion in 2012, according to the ""Mortgage Bankers Association (MBA)."":http://www.mbaa.org/default.htm

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Ninety-eight percent of the dollar volume of originations in the sector in 2012 were first-lien loans.

Almost all types of investors increased their activity in the market, according to the MBA's Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, released Wednesday.

Commercial bank and savings institutions experienced a 77 percent increase in loan volumes over the year in 2012.

The government continued to play a major role in the market, accounting for 32 percent of total investment over the year--about $77.6 billion.

Commercial banks and savings institutions accounted for 23 percent of the year's total investment in the market--about $56.9 billion.

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Life insurance companies were the next-largest investor, contributing about 20 percent of total investment, or $50.5 billion.

A breakdown of the government's investment reveals Fannie Mae as the most active government player in the market. The GSE invested $31.6 billion (13 percent of total investment for the year).

Freddie Mac was not far behind, contributing 11 percent of total investment for the year, about $26.7 billion.

FHA and Ginnie Mae contributed 8 percent of total investment, about $19.2 billion.

In terms of property type, origination volume increased among all types of commercial and multifamily properties in 2012, according to MBA.

""The multifamily market continued to be a major driver of activity, and nearly every investor group increased their activity from the year before,"" said Jamie Woodwell, VP of commercial real estate research at MBA.

The greatest increase was seen among hotel properties, a 47 percent increase. Retail properties followed with a 44 percent increase.

Multifamily properties experienced an increase of 33 percent. Office and industrial properties each experienced a 17 percent increase. Health care properties were close behind with a 16 percent increase.

In terms of dollar volume, multifamily properties charted the greatest origination volume for the year--$103.2 billion. Retail and office properties followed.

""With a continuation of low interest rates and improving property markets, originations are on track for continued growth this year,"" Woodwell said.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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