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The Latest or ig i nat ion ORIGINATION Originations Total $500B in Q1 Origination volume down, which surprised no one. S e c on da r y M a r k e t a na ly t ic s se r v ic i ng A Commercial, Multifamily Originations Mixed in Q1 Originations seesaw between quarters, years. F irst-quarter commercial and multifamily loan originations decreased 36 percent quarterover-quarter but climbed 9 percent over the same period last year, the Mortgage Bankers Association (MBA) reported. According to MBA, the overall increase in commercial/multifamily lending volume was driven largely by increases in originations for hotel and multifamily properties, which rose 35 percent and 30 percent, respectively. Among other property types, lending volume rose 2 percent for industrial properties while falling 25 percent for retail properties, 15 38 | The M Report percent for health care loans, and 6 percent for office properties, MBA revealed. Jamie Woodwell, VP of commercial real estate (CRE) research for the group, also added, "The overall number masks larger increases in the dollar volume of loans originated for commercial mortgage-backed securities (CMBS) and Fannie Mae and Freddie Mac and a decline in the amount originated for life insurance company portfolios." The dollar volume of loans originated for conduits for CMBS increased by 170 percent from last year's first quarter, MBA reported. Meanwhile, there was a 36 percent increase for GSE loans, an 8 percent increase for commercial bank portfolio loans, and a 21 percent decrease in dollar volume of loans originated for life insurance companies. On a quarterly basis, originations declined 69 percent in the first quarter for hotel properties, 65 percent for industrial properties, 45 percent for both office and health care properties, 32 percent for multifamily properties, and 17 percent for retail properties. Among investor types, dollar volume of loans for GSEs dropped 40 percent. Volume also decreased 38 percent among loans for conduits for CMBS, 31 percent among loans originated for life insurance company portfolios, and 29 percent among loans for commercial bank portfolios. s expected, mortgage origination volume slowed down a bit in the first quarter, with the usual suspects holding the bulk of market share. According to data from Inside Mortgage Finance, originations totaled about $500 billion in Q1, down 4.8 percent quarter-over-quarter (from $525 billion) but more or less in line with analysts' expectations. Despite the quarterly decline, origination volume still looked fairly strong, especially when compared to the $420 billion recorded during the same period last year. "This bodes well for results going forward, with positive commentary from many institutions that have released Q1 results thus far," FBR Capital Markets noted in an analysis. Using data from GSE loan sales, the firm projected a range of $450 billion to $500 billion for first-quarter originations. In their latest earnings reports, Bank of America and JPMorgan Chase both recorded gains in originations last quarter, while Wells Fargo saw a dip. Nevertheless, Wells continued to hold a grip on market share, ranked at the top with 22 percent. JPMorgan had about half that—11.1 percent—while online lender Quicken Loans and Bank of America were about even with 5.1 percent and 5 percent, respectively. Though some might view Wells' drop in originations as bad news for the industry, FBR said "the void left in the market will likely act as a large boon to smaller originators looking to take up share in future quarters." Additionally, with rates low and origination volume remaining strong, FBR expects the second quarter is well-positioned to surpass the first.