Commercial-mortgage lending is expected to increase in 2015, as lenders’ appetites to place new loans remain strong and borrowers’ appetites to borrow increase, according to a Mortgage Bankers Association survey of 60 commercial-mortgage origination firms. All of the firms surveyed said they expect originations to increase this year, with 68 percent saying they expect an increase of 5 percent or more. Almost three-quarters say they expect their own firm’s originations to increase by 5 percent or more. “Commercial-mortgage lenders anticipate another competitive year in 2015,” said Jamie Woodwell, MBA’s vice president for commercial real estate research. “Lenders’ appetites for loans remain very strong, and with the 10-year loans made during 2005, 2006 and 2007 maturing, lenders also anticipate growing demand from borrowers.” Loan risk is also expected to grow. Most respondents (73 percent) characterized the loans made in 2014 as “medium” risk. This year more respondents expect loans to be “somewhat high” risk (38 percent, versus 9 percent in 2014). Lenders were surveyed on a scale of very low, somewhat low, medium, somewhat high and high.
