Rally for CRE/MF Despite CMBS Decline


Commercial and multifamily mortgage originations in the third quarter were almost double what they were for the same period last year, according to the Mortgage Bankers Association.

Jamie Woodwell, MBA’s vice president of commercial real estate research, commented “Mortgage originations by life company portfolios hit another new record in the third quarter, and lending by bank portfolios and Fannie Mae and Freddie Mac also picked-up. Mortgage originations for the CMBS market, which was caught up in the global economic uncertainty of recent months, declined from last quarter, but were higher than last year’s Q3 level.”

Banks had the largest increase in activity, up 433% over the previous year, while commercial mortgage-backed securities conduits were up 169%, life companies increased originations by 69% and Fannie Mae and Freddie Mac were up 47%.

However, when compared with the second quarter, only the CMBS conduits saw a decline in activity, falling by nearly half.

Daily Briefing | Wednesday, November 2, 2011

  • Mortgage Banking Drags Down Ally in 3Q as MSR Values Sink

    The government owned Ally Financial posted a $210 million loss in the third quarter, dragged down by a $471 million pre-tax charge tied to its mortgage servicing rights.

  • Trepp: Late Payments on CMBS Still Rising

    Delinquency rates on securitized commercial mortgages continued to creep up in October with CMBS issuance slowing to a halt.

  • Surprise: U.S. Home Ownership Rate Increases — Slightly

    The U.S. homeownership rate rose unexpectedly in the third quarter from 2Q as rental vacancies climbed — with new evidence suggesting that tenants are tiring of rising rents.

  • Mobsters Indicted for Extorting Texas Mortgage Company

    FirstPlus Financial Group Inc., a publicly traded mortgage company in Beaumont, Texas, was illegally taken over through extortion by thirteen individuals, two of whom are linked to the Lucchese organized crime family, according to an indictment filed by the U.S. Department of Justice.

  • CoreLogic Develops Mortgage Fraud Prevention and Detection Guide

    CoreLogic is now offering financial and government institutions a tool that provides them information in order to combat mortgage fraud.

  • Refinancings Cause PHH Writedown of MSRs

    The refinance boom of the third quarter both helped and hurt earnings at PHH Corp., Mt. Laurel, N.J. The company reported a net loss of $148 million during the period due to a $361 million write-down of mortgage servicing rights values.

  • MBA: New Applications Show Weak Growth

    New residential loan applications grew fractionally for the week ending October 28, despite continued rock bottom interest rates, according to figures compiled by the Mortgage Bankers Association.

  • LPS: Foreclosures in Judicial States at 761 Days

    States that rely on judicial foreclosures to clear delinquent loans are swamped with large inventories of problem homes with the overall process taking six months longer than in non-judicial states, according to a new report from Lender Processing Services, Jacksonville, Fla.

  • Credit Suisse Plans to Exit CMBS Origination, Downsize Some ABS Businesses

    Because of still challenging market-making conditions, Credit Suisse Group is set to either downsize or cut altogether some securitization businesses and fixed-income units.

  • SP: 60% of European CMBS Loans Could Fail To Repay By End 2012

    Nearly two-thirds – or 60% – of European CMBS maturing loans could fail to repay by the end of 2012, according to Standard Poor’s.

  • N.Y. Court Rejects Countrywide Consolidation Motion

    The New York Supreme Court late Monday denied Countrywide and Bank of America’s motion to consolidate various claims against them made by four bond insurers led by MBIA Insurance Corp.

  • Idaho Housing Agency Weighs Financial Fix as Moody’s Extends Review

    Moody’s Investors Service has extended the review period for a possible downgrade of $871 million of outstanding bonds sold by the Idaho Housing and Finance Association while the issuer works on a plan to shore up its balance sheet.

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