Originations among health care companies continue showing signs of growth during as a recent survey reports modest increases on quarterly and yearly basis.
Health care loan originations detracted from the fourth quarter’s 49% rise in multifamily/commercial originations, falling 26% compared to the fourth quarter of 2011, according to a survey from the Mortgage Bankers Association (MBA).
However, based on the MBA’s index commercial and multifamily mortgage bankers originations index, full year originations in 2012 saw a 6% increase for healthcare properties above the previous year’s number of loans, contributing to the overall index’s 24% increase.
Additionally, healthcare loan originations shot up 57% between the third and fourth quarters of 2012, possibly as buyers and sellers tried to complete transactions prior to the implementation of higher tax rates on capital gains that became effective in the new year.
Last year’s growth was largely driven by origination increases among hotel properties (61%) and multifamily properties (36%), says the MBA.
“Low interest rates are prompting borrowers to finance, and improving property markets are helping more deals underwrite successfully, “ said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The relative strength of commercial and multifamily mortgages as investments continues to fuel lenders’ appetites.”
Written by Jason Oliva