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Commercial and multifamily loan originations were up 2% for the first nine months of 2016 compared to last year, but other sectors aren’t so lucky.
That’s according to the Mortgage Bankers Association, which said third-quarter originations were up 5% compared to the year-ago quarter and up 7% compared to Q2 2016, CoStar reports. Commercial mortgage backed securities also enjoyed a jump in Q3, with a 32% year-over-year increase in the dollar volume of loans for industrial properties and a 26% spike for multifamily.
That’s the good news—the bad news is office lending fell 5%, retail property lending dropped 23%, hotel property lending decreased 30% and healthcare property lending plummeted 59%. US banks are also moderating their multifamily lending after a Comptroller of the Currency report at the end of 2015 expressed concerns regarding the growing concentration of CRE loans on their books. [CoStar]
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