MBA: Commercial and Multifamily Loan Originations Decline 47 Percent in 2023

by John Nelson

WASHINGTON, D.C. — Preliminary estimates from Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations show that commercial and multifamily loan originations in 2023 are down 47 percent compared to 2022. The Washington, D.C.-based organization also reports that originations in fourth-quarter 2023 declined 25 percent year-over-year but increased by 13 percent from third-quarter 2023. The association released its findings during its 2024 Commercial/Multifamily Finance Convention and Expo (MBA CREF), an annual conference that concludes today.

Loan volume declined for every property sector and investor type that MBA tracks in 2023. By property type, originations for healthcare properties decreased 67 percent compared to 2022; office properties decreased 65 percent; industrial properties decreased 49 percent; multifamily properties decreased 46 percent; retail properties decreased 27 percent; and hotel properties decreased 10 percent.

Among investor types, originations for depositories (i.e. banks and credit unions) decreased 64 percent; originations for investor-driven lenders decreased 51 percent; loans for life insurance companies decreased 39 percent; loans for government-sponsored enterprises, including Fannie Mae and Freddie Mac, decreased 21 percent; and CMBS loans decreased 21 percent.

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