Commercial opportunities to grow in 2014

by Ryan Smith09 Jan 2014
Commercial and multifamily lending will be on the rise over the next year, and lenders expect an increase in mortgage originations, according to data released Wednesday.

The Mortgage Bankers Association’s survey of the top commercial and multifamily lenders showed that 91% of those polled believe originations will increase in 2014, with 48% predicting an increase of at least 5% overall. Almost two-thirds of those polled expected originations at their own firm to jump by 5% or more, according to the MBA.

“Commercial and multifamily lenders anticipate a market in which lending continues to grow and their firm gets a bigger piece of the pie,” said Jamie Woodwell, MBA’s vice president for commercial real estate research.  “Borrowers’ appetites to take out new loans are expected to remain strong, but perhaps drop a bit from 2013 levels.  The resulting competition to lend leads originators to expect loan risk to increase marginally in the face of moderating returns.”

Most of those polled predicted that originations for commercial mortgage-backed securities, commercial banks, life companies and pension funds to increase, while expecting originations for Fannie Mae, Freddie Mac and the Federal Housing Administration to drop. About 65% predict lenders will show a “very strong” appetite to make loans – but only 23% expect borrowers to display a similar appetite for taking out loans, according to the MBA.


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