Despite some revisions to projections for commercial and multifamily mortgage originations from the Mortgage Bankers Association, 2016 is looking like a strong year for the commercial mortgage industry.
MBA has changed its projected origination volume for commercial and multifamily mortgages to $500 billion, down from $504 billion in 2015. The original prediction for 2016 had the origination volume estimated to be $511 billion.
According to MBA VP of Commercial Real Estate Research Jamie Woodwell, the industry can still expect a healthy level of activity from the commercial and multifamily mortgage markets, in spite of the downward revisions and an uncertain economic climate at home and abroad.
“The year has started off with more than its fair share of twists and turns,” Woodwell said. “On the demand side, strong property fundamentals and prices should continue to support an active sales market, which will drive mortgage demand. The net result will likely be 2016 originations coming in just a shade lower than 2015 levels. Global economic uncertainty and a range of regulations that could affect the availability of CRE financing remain wildcards.”
Brokers looking to close more mortgages should consider working with borrowers who need small-balance commercial mortgages. This is an underserved market, so the demand for brokers is consistent and strong. Submitting an initial small-balance commercial mortgage scenario is often as simple as sending a completed 1003, a tri-merge credit report, a summary of the deal and property photos. If you choose the right lender, closing these loans is a simple and efficient way to earn more income.