WASHINGTON, D.C. — Mortgage bankers closed more than $184.3 billion in commercial and multifamily mortgage loans in 2011, up 55 percent from the prior year.

The findings from the Mortgage Bankers Association (MBA) also indicate that multifamily loans dominated the market in 2011, with new originations in that category reaching $77.4 billion. The office sector was the next highest property segment, accounting for $34.4 billion in originations.

Meanwhile, lending for retail properties saw the largest percentage increase among major property types, followed closely by multifamily and industrial properties.

Collectively, Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) represented the leading investor group for which loans were originated in 2011, accounting for $57.6 billion of the total. Life insurance companies and pension funds saw the second highest volume, $49.3 billion.
 

The MBA states origination volumes for Fannie Mae, Freddie Mac and the FHA each hit new records in 2011. However, faster growth in multifamily lending by other investors led the Fannie and Freddie market share to decline in 2011. The government-related financing giants accounted for 57 percent of loan volume in 2011, down from 63 percent in 2010 and 85 percent in 2009.

"Commercial mortgage lending continues to rebound from its 2009 lows," Jamie Woodwell, MBA's vice president of commercial real estate research, said in a prepared statement. "Originations for life companies, Fannie Mae, Freddie Mac and FHA were all strong, and banks, commerical mortgage-backed securities (CMBS) issuers and others also saw strong growth. With interest rates still low and stability returning to real estate fundamentals, the rebound is expected to continue in 2012."

— Liz Burlingame