Commercial mortgage bankers in the United States generated $ 441.5 billion in 2020
Which was 26% below the record $ 601 billion in 2019
According to the Mortgage Bankers Association’s 2020 Original Commercial Real Estate and Multi-Family Finance Original Volume SUM, Commercial and Multi-Family Mortgage Bankers completed $ 441.5 billion in loans in 2020. The $ 441.5 billion dollars in commercial and multi-family mortgages entered into last year were 26% below the record high of $ 601. billion declared in 2019.
“Borrowing and commercial and multi-family loans in 2020 are down by a quarter from the peak year of 2019 as the COVID-19 pandemic disrupted the economy and created increased uncertainty,” said Jamie Woodwell , Vice President of Commercial Real Estate Research at the MBA. “The types of properties most affected by the pandemic – accommodation and retail – saw the biggest declines in creations, while those in which investors and lenders had the greatest confidence – especially multi-family – have better The source of capital also mattered, along with the government- Guaranteed loans from Fannie Mae, Freddie Mac and FHA hit new records in volume. “
Multi-family properties recorded the highest volume of mortgage origination last year at $ 272.0 billion, followed by office buildings, industrial properties, retail, health care and hotels / motels. The first liens represented 98 percent of the total dollar volume closed.
Government-sponsored companies (Fannie Mae and Freddie Mac) were the main source of capital for loans issued in 2020, accounting for $ 164.1 billion of the total. Custodians posted the second highest volume at $ 109.3 billion, followed by life insurance companies and pension funds, issuers of commercial mortgage backed securities (CMBS) and the FHA / Ginnie Mae.