2 Q12 Quarterly Data Book

MBA COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE
QUARTERLY DATABOOK Q2 2012

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September 2012 Mortgage Bankers Association. All rights reserved. Copying or other redistribution of this publication in whole or in part violates U.S. copyright law as well as any applicable MBA terms of use. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the copyright owner. Disclaimer Although the MBA takes great care in producing this and all related data products, MBA does not guarantee that the information is accurate, current or suitable for any particular purpose. The referenced data are provided on an as is basis, with no warranties of any kind whatsoever, either express or implied, including, but not limited to, any warranties of title or accuracy or any implied warranties of merchantability or fitness for a particular purpose. Use of the data is at the users sole risk. In no event will MBA be liable for any damages whatsoever arising out of or related to the data, including, but not limited to direct, indirect, incidental, special, consequential or punitive damages, whether under a contract, tort or any other theory of liability, even if MBA is aware of the possibility of such damages.
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MBA COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE
QUARTERLY DATABOOK Q2 2012
Second Quarter 2012
Selected Charts
Month-over-month Change in At-Place Employment Thousands of jobs
Treasury Yield Curve Percent
Source: Bureau of Labor Statistics
Source: Federal Reserve Board
Ten-year Treasury and 10-year Swaps Percent
Multifamily Permits, Starts and Completions Thousands, Seasonally adjusted annual rate
Source: Federal Reserve Board
Source: Census Bureau
Commercial/Multifamily Mortgage Bankers Originations Index 2001 quarterly average = 100
Source: MBA
The Commercial Real Estate/ Multifamily Finance Quarterly Data Book is a quarterly compendium of the latest MBA research on the commercial/multifamily finance markets. The latest version of the Data Book can be downloaded from the MBA website at: http://www. mortgagebankers.org/Res earchandForecasts/
Commercial/Multifamily Property Sales $Billions
Price Indices December 2000 = 100
Source: Real Capital Analytics
Source: MBA, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors
Monthly Retail Sales
Average Vacancy Rates By Property Type
Source: U.S. Census Bureau
Source: REIS
MBA Commercial Real Estate/ Multifamily Finance Quarterly Data Book Second Quarter 2012
September 27, 2012
SELECTED CHARTS .................................................................................................. 5 TABLE OF CONTENTS ............................................................................................... 7 1. OUTLOOK Introduction ......................................................................................................... 9 Economic Commentary ........................................................................................ 11 MBA Long-Term Mortgage Finance and Economic Forecasts ...................................... 13 Treasury Yields and Bank Rates ............................................................................ 15 Employees on Non-farm Payrolls ........................................................................... 17 Monthly Retail Sales ............................................................................................ 19 Owner- and Renter-Occupied Housing Units............................................................ 22 2. COMMERCIAL/MULTIFAMILY FINANCE ENVIRONMENT Extract of Commercial Real Estate Comments from The Federal Reserve Boards Beige Book ........................................................... 24 New Inventory Change Less Net Absorption for Commercial/Multifamily Properties ................................................................... 28 Average Rents and Vacancy Rates at Commercial/Multifamily Properties .................... 30 Multifamily Building Permits, Starts and Completions ............................................... 32 Value of Construction Put-In-Place ........................................................................ 35 Commercial/Multifamily Property Sales Volume ....................................................... 39 Commercial/Multifamily Prices and Capitalization Rates ............................................ 41 Commercial/Multifamily Property Price Indices ........................................................ 43 3. PRODUCTION Quarterly Mortgage Banker Originations Survey ...................................................... 45 Commercial Mortgage Backed Securities (CMBS) and Commercial Real Estate Collateralized Debt Obligation (CRE CDO) Issuance ............................ 49 American Council of Life Insurers (ACLI) Commitment Volumes ................................ 51 4. COMMERCIAL MORTGAGE DEBT & REAL ESTATE SECURITIES OUTSTANDING Commercial/Multifamily Mortgage Debt Outstanding ................................................ 53 Commercial/Multifamily Mortgage Delinquencies by Investor Group ........................... 70 Commercial Mortgage-Backed Securities (CMBS) Outstanding .................................. 77 Commercial Mortgage Backed Securities (CMBS) Spreads ........................................ 80 5. SERVICING Commercial/Multifamily Mortgage Servicers, Mid-Year 2012 ..................................... 82 6. RECENT MBA COMMERCIAL/MULTIFAMILY RESEARCH RELEASES .................. 100
COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE
QUARTERLY DATABOOK
1. Outlook
Q2 2012
For CRE, Growth, But Slow Growth

Commercial real estate markets continue to mirror the US economy as a whole exhibiting growth, but slow growth. THE ECONOMY The US economy as measured by the real value of goods and services produced continued to grow in the second quarter, but the pace of growth slowed from that of the first quarter. Real US gross domestic product (GDP) grew at a seasonally adjusted annual rate of 1.7 percent in the second quarter, down from 2.0 percent during the first quarter. Employment also grew, and also grew at only a modest pace. On a seasonally adjusted basis, the US economy added 275,000 non-farm jobs in January, 259,000 in February and 143,000 in March, but only 68,000 in April, 87,000 in May, 45,000 in June, 141,000 in July and 96,000 in August. In recent months, job gains in serviceproducing industries have been offsetting losses in government jobs and flatness in the number of goods-producing jobs. Retail sales fell during the second quarter before picking back up in July and August. The second quarter also saw the first yearover-year increase in the number of owneroccupied households since Q1 2010. Compared to last years second quarter, there were 126,000 more owner-occupied households and 685,000 more renteroccupied households. COMMERCIAL REAL ESTATE FUNDAMENTALS Commercial real estate fundamentals continue to follow the broader economy. The growth (albeit slow) in employment, retail sales and other aspects of the economy continue to draw down slightly vacancy rates and to allow for some modest rent growth. (Office vacancy rates have fallen from 17.5 percent to 17.2 percent over the year and asking rents have increased by 2 percent. Retail vacancy rates have fallen from 11.0 percent to 10.8 percent and asking rents have remained flat). Multifamily apartments are the exception. The strength in demand from renters continues to draw down apartment vacancy rates (from 5.9 percent in Q2 2011 to 4.7 percent in Q2 2012) and push apartment asking rents up (by 3 percent over the year). Nationally, construction activity has responded for multifamily properties, but less so for other property types. On a seasonally adjusted annual average, multifamily building permits were issued for 274,000 units in July more than double the 121,000 issued in 2009 and getting closer to the 300,000 figure that was the norm for much of the mid 1990s and early 2000s. The value of construction put-inplace, however, remains near postrecession lows for most other commercial property types. PROPERTY SALES Commercial real estate sales in the second quarter were 13 percent higher than first quarter volumes, but down 18 percent compared to last years second quarter. On a year-to-date basis, sales of apartment properties are up 23 percent, office properties are up 7 percent and industrial properties down 26 percent. Average cap rates continued to compress during the quarter, with average cap rates for office properties falling from 7.2 percent to 7.1 percent; retail falling from 7.3 percent to 7.2 percent and industrial falling from 7.8 percent to 7.7 percent. Average apartment cap rates were stable at 6.2 percent.
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
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September 2012 Mortgage Bankers Association. All rights reserved.
QUARTERLY DATABOOK
Q2 2012
Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, with $360 billion, or 44 percent of the total multifamily debt outstanding. They are followed by banks and thrifts with $225 billion, or 27 percent of the total. CMBS, CDO and other ABS issues hold $83 billion, or 10 percent of the total; state and local governments hold $71 billion, or 9 percent of the total; life insurance companies hold $51 billion, or 6 percent of the total; and the federal government holds $14 billion, or 2 percent of the total. Commercial and multifamily delinquency rates for life companies, Fannie Mae and Freddie Mac all remain quite low, and the delinquency rate for bank-held loans continues to decline. The delinquency rate for loans in CMBS continues to show higher and more sustained aggregate delinquency rates, much of which is driven by the large share of these loans in foreclosure or REO. During the second quarter of 2012, the 60+ day delinquency rate for commercial and multifamily mortgages held in life company portfolios increased 0.01 percentage points to 0.15 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.08 percentage points to 0.29 percent. The 90+ day delinquency rate for loans held by FDICinsured banks and thrifts decreased 0.34 percentage points to 3.11 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac increased 0.04 percentage points to 0.27 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) increased 0.12 percentage points to 8.97 percent.
Commercial property prices continue to work back from their recession lows. The Moodys/REAL CPPI grew 1.2 percent over the quarter and now stands at 79 percent of its prerecession high; The NCREIF TBI fell 0.1 percent during the quarter and is at 83 percent of its prerecession high; and the Green Street Advisors CPPI grew 1.8 percent over the quarter and is now at 94 percent of its prerecession high. COMMERCIAL MORTGAGE ORIGINATIONS Commercial and multifamily mortgage lending and borrowing continued to pick up in the second quarter. Commercial/multifamily mortgage origination volumes during the second quarter were 25 percent higher than second quarter 2011 levels, and up 39 percent from the first quarter of 2012. Originations for commercial banks were up 58 percent from last years second quarter. Originations were up 50 percent for Fannie Mae and Freddie Mac, up 16 percent for CMBS conduits and up 10 percent for life insurance companies. MORTGAGE DEBT OUTSTANDING The level of commercial/multifamily mortgage debt outstanding decreased by $10.4 billion, or 0.4 percent, in the second quarter of 2012, as the balance of loans in CMBS, CDO and other ABS issues continued to decline. The $2.37 trillion in outstanding commercial/multifamily mortgage debt was $10.4 billion lower than the first quarter 2012 figure. Multifamily mortgage debt outstanding rose to $826 billion, an increase of $5.4 billion or 0.7 percent from the first quarter of 2012. Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $815 billion, or 34 percent of the total. CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $555 billion, or 23 percent of the total. Agency/GSE portfolios and MBS hold $360 billion, or 15 percent of the total, and life insurance companies hold $320 billion, or 14 percent of the total.
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Economic Commentary
Slow Climb Resumes
September 2012
Q2 2012
The economy is growing, slowly. Fears that we were sliding back down into recession, prompted by weaker economic data this spring, have been quieted by somewhat stronger reports this summer, showing the companies are hiring, consumers are spending, and housing markets are turning. There is a risk of renewed turmoil in Europe. And the lack of any visible progress regarding the fiscal cliff, the set of tax increases and spending cuts scheduled to hit the economy in 2013, is perhaps a more important risk at this point. We are not confident that a long term solution can be reached until after the 2012 elections or even before the end of the year. We have assumed that growth will be slower in the first half of 2013 either because a short term fix is employed, or simply due to the high level of uncertainty for households and businesses. In the midst of such uncertainty, many will choose to wait to buy or to hire. Retail sales were stronger than expected in July, with an increase of 0.8 percent in July versus 0.3 percent as expected by most analysts. Core retail sales, which excludes automobiles, gasoline and building materials, increased 0.9 percent. Most major spending categories saw increases over the month. Inflation remains contained. The overall CPI was unchanged in July, held down by a decline in energy prices, although food and housing increased. On a year over year basis, the CPI increased 1.4 percent, which was the smallest YOY gain since November 2010. Growth in the core CPI measure was the slowest in five months in July, only up 0.09 percent from the previous month and 2.1 percent over the year.
Industrial production in July reached the highest in four years, as all major industry groups saw significant increases. Production of motor vehicles and parts was a large driver of this, reaching the highest level since 2007 and recording the second largest monthly gain of 2012. Total industry capacity utilization also increased to the highest level in four years. The July employment numbers also provided a little relief, with nonfarm payroll employment increasing by 163,000 jobs over the month. This broke a run of three months of sub-100,000 job growth. However, the average monthly job growth for the year is still far from what is needed for overall economic growth and it remains to be seen if the July growth numbers can be sustained. The unemployment rate edged up to 8.3 percent in July, and the U6 measure of underutilization increased slightly to 15 percent as well. We expect the increase in the unemployment rate to continue through the end of the year, reaching 8.4 percent in the fourth quarter. The employment picture looks slightly worse in 2013 given the likely negative impact of US fiscal policy inaction. The housing market has continued to recover, with many markets showing year/year home price growth for the first time since the beginning of the crisis. Housing starts dropped in July, with single family starts falling for the first time in five months. Multifamily starts however, continued to increase as rental housing demand remains high. Both single family and multifamily permits however, increased in July, with single family permits increasing to the highest level since 2010. Home purchase mortgage applications edged down in July and have continued to
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
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QUARTERLY DATABOOK
Q2 2012
decline in August. Refinance applications however, continue to run at elevated levels as rates have remained low and incentives to refinance, like HARP 2.0, still remain. As a result we have revised our refinance originations forecast higher by $86 billion for 2012. Refinance originations are now expected to be around $1 trillion for 2012, compared to an estimated $858 billion in 2011 and $1.1 trillion in 2010. Total originations for 2012 are expected to be a little over $1.4 trillion, compared to just under $1.3 trillion in 2011. Mortgage rates will likely remain under 4 percent until mid 2013.
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Q2 2012
OUTLOOK ENVIRONMENT PRODUCTION OUTSTANDING SERVICING RELEASES

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QUARTERLY DATABOOK
Q2 2012
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
TREASURY YIELDS AND BANK RATES Federal Reserve Statistical Release H-15
Q2 2012
Treasury Yield Curve

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 3-Month Aug-12 Aug 12 1-Year Dec-11 Dec 11 3-Year Dec-10 Dec 10 5-Year Dec-09 Dec 09 7-Year Dec-08 Dec 08 10-Year Dec-07 Dec 07
Ten Year Treasury and Ten Year Swaps

8.0 7.0 60 6.0 5.0 4.0 3.0 2.0 1.0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 RELEASES
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10-Year Treasury
10 Year Swaps
Source: Federal Reserve Board H-15 Report p Yields on actively traded issues adjusted to constant maturities.
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
QUARTERLY DATABOOK
TREASURY YIELDS AND BANK RATES Federal Reserve Statistical Release H-15
Q2 2012
3-Month Treasury Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec 05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Aug-11 A 11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar 12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Change in R t A Rate Aug11 to Aug12 5.94 1.72 1.21 0.91 2.22 3.97 4.97 3.07 0.03 0.05 0.14 0.01 0.02 0 02 0.01 0.02 0.01 0.01 0.03 0.09 0.08 0.08 0.09 0.09 0.10 0.10
1-Year Treasury 5.60 2.22 1.45 1.31 2.67 4.35 4.94 3.26 0.49 0.37 0.29 0.12 0 11 0.11 0.10 0.11 0.11 0.12 0.12 0.16 0.19 0.18 0.19 0.19 0.19 0.18
3-Year Treasury 5.26 3.62 2.23 2.44 3.21 4.39 4.58 3.13 1.07 1.38 0.99 0.39 0.38 0 38 0.35 0.47 0.39 0.39 0.36 0.38 0.51 0.43 0.39 0.39 0.33 0.37
5-Year Treasury 5.17 4.39 3.03 3.27 3.60 4.39 4.53 3.49 1.52 2.34 1.93 0.89 1 02 1.02 0.90 1.06 0.91 0.89 0.84 0.83 1.02 0.89 0.76 0.71 0.62 0.71
7-Year Treasury 5.28 4.86 3.63 3.79 3.93 4.41 4.54 3.74 1.89 3.07 2.66 1.43 1 63 1.63 1.42 1.62 1.45 1.43 1.38 1.37 1.56 1.43 1.21 1.08 0.98 1.14
10-Year Treasury 5.24 5.09 4.03 4.27 4.23 4.47 4.56 4.10 2.42 3.59 3.29 1.98 2 30 2.30 1.98 2.15 2.01 1.98 1.97 1.97 2.17 2.05 1.80 1.62 1.53 1.68
10-Year Swap 6.27 5.82 4.48 4.65 4.63 5.01 5.03 4.76 2.70 3.71 3.39 2.13 2 45 2.45 2.17 2.31 2.19 2.13 2.07 2.05 2.23 2.13 1.94 1.77 1.63 1.78
0.08
0.07
(0.01)
(0.31)
(0.49)
(0.62)
(0.67)
Source: Federal Reserve Board H-15 Report Yields on actively traded issues adjusted to constant maturities.
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
EMPLOYEES ON NONFARM PAYROLLS
Q2 2012
Number of Employees on Nonfarm Payrolls Seasonally Adjusted, Thousands of Employees
Year-over-year Change
6,000 4,000 2,000 (2,000) (4,000) (6,000) (8,000) 1990 90 91 1991 92 1992 93 1993 94 1994 95 1995 96 1996 97 1997 98 1998 99 1999 00 2000 01 2001 02 2002 03 2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 2010 11 2011 12 2012
Total Non-Farm
Service Producing
Goods Producing
Government
Month-over-month Change
600 400 200 (200) (400) (600) (800) (1,000) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Service Producing
Goods Producing
Government
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
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QUARTERLY DATABOOK
EMPLOYEES ON NONFARM PAYROLLS Number of Employees on Nonfarm Payrolls Seasonally Adjusted, Thousands of Employees Private Service Producing Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Percent change May 2011 to Aug 2012 87,105 86,274 86,402 86 402 87,010 88,618 90,560 92,392 93,633 91,500 89,056 90,303 92,017 91,359 91,542 91,675 91,845 92,017 92,216 92,434 92,553 92,634 92,765 92,819 92,958 93,077 2.2% Private Goods Producing 24,572 23,091 22,185 22 185 21,703 22,005 22,375 22,402 21,973 20,324 17,784 17,785 18,176 18,067 18,100 18,106 18,114 18,176 18,254 18,290 18,318 18,322 18,307 18,316 18,339 18,323 1.8% Change Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 1,690 (831) 128 608 1,608 1,942 1,832 1,241 (2,133) (2,444) (2 444) 1,247 1,714 56 183 133 170 172 199 218 119 81 131 54 139 119
Q2 2012
Government 20,804 21,355 21,588 21 588 21,546 21,693 21,879 22,088 22,376 22,555 22,479 22,258 21,993 22,066 22,052 22,025 22,004 21,993 21,991 21,996 21,992 21,975 21,946 21,928 21,907 21,900 -1.0%
Total Nonfarm 132,481 130,720 130,175 130 175 130,259 132,316 134,814 136,882 137,982 134,379 129,319 130,346 132,186 131,492 131,694 131,806 131,963 132,186 132,461 132,720 132,863 132,931 133,018 133,063 133,204 133,300 1.6%
y Year-over-year (6) 264 (1,481) 551 (906) 233 (482) (42) 302 147 370 186 27 209 (429) 288 (1,649) 179 (2,540) (2 540) (76) 1 (221) 391 (265) Month-over-month (4) 33 33 (14) 6 (27) 8 (21) 62 (11) 78 (2) 36 5 28 (4) 4 (17) (15) (29) 9 (18) 23 (21) (16) (7)
1,948 (1,761) (545) 84 2,057 2,498 2,068 1,100 (3,603) (5,060) (5 060) 1,027 1,840 85 202 112 157 223 275 259 143 68 87 45 141 96
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
MONTHLY RETAIL SALES Seasonally Adjusted
Q2 2012
Retail sales, excluding motor vehicle and parts dealers, $millions 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2006 - Jul 2007 - Jul 2008 - Jul 2009 - Jul 2010 - Jul 2011 - Jul 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2012 - Jan 2012 - Jan 2012 - Jul
RELEASES
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Year-Over-Year % Change in Trailing three month retail sales, excluding motor vehicles and parts delears 15% 10% 5% 0% -5% -10% -15% 2006 - Jul 2007 - Jul 2008 - Jul 2009 - Jul 2010 - Jul 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2011 - Jul

OUTLOOK ENVIRONMENT PRODUCTION OUTSTANDING SERVICING
2012 - Jul
QUARTERLY DATABOOK
MONTHLY RETAIL SALES Seasonally Adjusted By Kind of Business, $millions General Merchandise 56,000 54,000 52,000 50,000 48,000 46,000 44,000 42,000 40,000 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan
Q2 2012
Food and Beverage Stores 60,000 50,000 40,000 30,000 20,000 10,000 2012 - Jan 0 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2011 - Jan 2012 - Jan 2012 - Jan
Building Materials 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2012 - Jan 25,000 20,000 15,000 10,000 5,000 0
Health and Personal Care Stores
2006 - Jan
2007 - Jan
2008 - Jan
2009 - Jan
Clothing & Accessories 25,000 20,000 15,000 10,000 5,000 0 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2012 - Jan
Source:U.S.CensusBureau Source: U S Census Bureau

OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
2010 - Jan
RELEASES
QUARTERLY DATABOOK
MONTHLY RETAIL SALES Seasonally Adjusted By Kind of Business, $millions Total excludes motor vehicle and parts dealers
Q2 2012
General Merchandise
Selected Businesses Food & Building Health & Beverage Materials Personal
Clothing & Accessories
Total
% Change YearOverYear
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
402,513 427,401 447,574 468,894 495,736 528,149 554,367 579,084 596,544 592,144 608,210 629,744
443,717 462,842 465,366 474,690 488,988 508,245 525,838 548,292 568,700 569,049 582,239 613,835
229,655 238,506 248,193 263,079 293,754 320,801 335,206 320,787 303,382 266,703 267,341 279,557
155,188 166,687 180,157 192,514 198,704 210,247 223,717 237,243 246,089 253,241 261,146 272,647
167,112 167,593 172,308 178,417 189,393 200,233 212,945 221,547 217,235 204,951 213,520 226,392
2,184,210 2,246,409 2,311,119 2,420,731 2,597,149 2,800,375 2,977,168 3,090,809 3,155,683 2,954,762 3,093,486 3,329,655
6.91% 2.85% 2.88% 4.74% 7.29% 7.82% 6.31% 3.82% 2.10% -6.37% 4.69% 7.63% MonthoverMonth
2011 - Aug 2011 - Sep 2011 - Oct 2011 - Nov 2011 - Dec 2012 - Jan 2012 - Feb 2012 - Mar 2012 - Apr 2012 - May 2012 - Jun 2012 - Jul 2012 -Aug
52,621 53,126 53,052 53,082 53,020 53,563 53,431 53,388 52,791 52,689 52,536 52,606 52,424
51,548 51,448 51,831 51,838 51,488 52,074 52,195 52,449 52,582 52,523 52,621 52,833 52,808
23,550 23,612 24,075 23,936 24,581 24,940 24,931 25,339 24,531 24,006 23,504 23,779 24,013
22,849 22,836 22,920 22,857 22,933 22,979 23,056 22,970 23,031 22,921 22,618 22,995 23,031
18,877 19,245 19,012 19,193 19,371 19,418 19,904 19,820 19,515 19,683 19,826 19,970 19,949
279,495 280,543 282,740 283,820 282,497 285,408 288,274 289,413 287,280 286,318 283,780 286,106 288,482
0.27% 0.37% 0.78% 0.38% -0.47% 1.03% 1.00% 0.40% -0.74% -0.33% -0.89% 0.82% 0.83%
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OUTSTANDING
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QUARTERLY DATABOOK
Change in Owner- and Renter-Occupied Housing Units Thousands of Units Year-over-year Change
2,500 2,000 1,500 1,000 500 (500) (1,000) (1,500) 1990
Q2 2012
1995
2000
2005
2010
Change in Renter-occupied Units
Change in Owner-occupied Units
Quarter over quarter Quarter-over-quarter Change

1,500
1,000
500
(500)
(1,000) 1990 1995 2000 2005 2010
Change in Renter-occupied Units
Change in Owner-occupied Units
Source: MBA, U.S. Census Bureau and Haver Analytics

OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Thousands of Units at End-of-period
Q2 2012
Owner- and Renter-Occupied Housing Units
Number of Occupied Units Total T t l Owner O Renter R t 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 91,728 92,691 93,980 95,717 96,797 97,545 98,421 99,743 101,115 102,330 103,646 104,698 105,759 106,505 108,735 110,281 111,096 111,724 111,823 112,485 113,439 113 439 114,123 58,798 59,508 60,523 61,450 62,144 63,502 64,367 65,531 67,140 68,459 70,010 71,230 72,187 73,091 75,233 76,119 76,544 75,720 75,465 75,537 75,413 75 413 74,602 32,930 33,183 33,457 34,267 34,653 34,043 34,054 34,212 33,975 33,871 33,635 33,468 33,572 33,414 33,502 34,162 34,552 36,003 36,358 36,948 38,026 38 026 39,522
Year-over-year Change Total T t l Owner O Renter R t 750 963 1,289 1,737 1,080 748 876 1,322 1,372 1,215 1,315 1,053 1,061 746 2,230 1,546 815 627 100 662 954 684 754 710 1,015 927 693 1,358 866 1,164 1,609 1,318 1,551 1,220 957 904 2,142 886 425 (824) (255) 72 (124) (811) (4) 253 274 810 387 (610) 10 158 (237) (103) (236) (167) 104 (158) 88 660 390 1,451 355 590 1,078 1 078 1,496
2010 - Q2 2010 - Q3 2010 - Q4 2011 - Q1 2011 - Q2 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2
112,724 112,935 113,439 113,111 113,391 113,548 114,086 114,123 114,200
75,416 75,529 75,413 75,092 74,706 75,251 75,315 74,602 74,832
37,308 37,405 38,026 38,018 38,684 38,298 38,772 39,522 39,369
Quarter-over-quarter Change 227 (62) 289 211 113 97 504 (116) 621 (328) (321) (8) ( ) ( ) ( ) 280 (386) 666 157 545 (386) 538 64 474 37 (713) 750 77 230 (153)
Source: MBA, U.S. Census Bureau and Haver Analytics
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ENVIRONMENT
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OUTSTANDING
SERVICING
RELEASES
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QUARTERLY DATABOOK
Q2 2012
2. Commercial/Multifamily Finance Environment

Extract of Commercial Real Estate Comments from the Federal Reserve Boards Beige Book
August 29, 2012
Prepared at the Federal Reserve Bank of Boston and based on information collected on or before August 20, 2012. This document summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. NATIONAL SUMMARY Commercial real estate market conditions held steady or improved in nearly all Districts in recent weeks. New York, Philadelphia, Minneapolis, and Kansas City all reported that commercial leasing increased and vacancy rates fell. New York and Kansas City reported increases in office rents as well; Kansas City also cited a rise in commercial construction. Commercial building permits were up significantly from one year ago in portions of the Minneapolis District. Chicago's report was mixed: office vacancy rates remained high, restraining demand for new office construction, but office leasing demand improved modestly and industrial construction picked up. Atlanta reported rising apartment rents and small gains in office leasing, with weakness in the retail and industrial sectors. Boston reported that office fundamentals were flat on average, with rising rents in portions of Boston proper and muted but steady activity elsewhere in the District. Nonresidential construction picked up in the Boston and Cleveland Districts. Office and industrial real estate markets remained healthy in Dallas. The St. Louis report noted an increase in commercial construction across much of the District and varied reports on leasing across areas within the District. In San Francisco, demand for commercial property was stable while commercial construction was limited. Richmond reported a decline in office
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leasing volume in Washington, D.C., but some portions of the District recorded increasing sales and construction. Multifamily real estate remained a strong submarket and a key driver of construction in many Districts, including Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago, Minneapolis, Dallas, and San Francisco. FIRST DISTRICTBOSTON Commercial real estate fundamentals held roughly steady in recent weeks across the First District. Boston continues to enjoy strong leasing demand in pockets of the city and comparatively slow but steady activity in the Financial District. Leasing activity remains light in Hartford, where the retail sector is seen as a weak point. Activity in Providence is mixed across sectors and year-to-date has fallen short of expectations as a result of vacancy shocks. In Portland, office leasing activity is up from earlier in the year, but rents have stayed roughly flat. Across the District, a few contacts note that traditional downtown tenant types, such as law firms and large financial firms, continue to reduce square footage of office space per worker. These reductions are viewed as structural and suggest that future employment growth in professional services may lead to less absorption than previous norms of office space would imply. Investor interest in Greater Boston commercial real estate remains high, especially for multifamily rental properties, and interest rate spreads are lower than a year earlier for comparable deals. Apartment construction extended its recent boom in the city and some large build-tosuit office projects have broken ground in recent months. One Boston-based bank lender notes an increase in small-scale
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remaining supply of office and retail space has tightened somewhat. Moreover, the increased population is attracting the interest of outside retailers. Contacts also indicated some increased interest in commercial properties in southern New Jersey. The overall outlook for nonresidential real estate remains one of slow growth, but it has solidified and broadened throughout the Third District since the last Beige Book. FOURTH DISTRICTCLEVELAND Nonresidential contractors described current business conditions as improving and better when compared to a year ago. However, construction activity for small to mediumsize builders is still substantially below prerecession levels, and profit margins are tight. Project work is broad based, driven by industrial (manufacturing and distribution), education, and healthcare clients and multifamily housing. The short-term outlook is fairly positive, but builders are concerned about the domestic political climate, events in Europe, and potential defense cutbacks. Building material prices were stable. Even with the pickup in work, residential and nonresidential builders are reluctant to hire additional workers. Wage pressures are contained. Some residential and commercial subcontractors have attempted to raise their billing rates but were largely unsuccessful. FIFTH DISTRICTRICHMOND Commercial real estate activity remained mixed over the last few weeks. A few Realtors pointed to companies that were downsizing their space requirements as a cause for limited new construction and high vacancy rates. An agent in the D.C. area reported a recent drop in office leasing activity by as much as half from year-ago levels. However, several Realtors noted that, due to the lack of office construction, landlords had been offering fewer incentives to capture or retain tenants at existing properties. Retail leasing activity was mostly described as weak, especially among small, locally owned businesses. A contact in northern Virginia noted weakness in many segments of the market, but notable
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(under $10M) loan demand in recent months in the office and retail sectors. Outside of Boston, construction and investment sales activity remain limited. A few contacts remark that political uncertainty is putting a damper on business sentiment. In particular, the threat of tax hikes (at all levels of government) is seen as a possible restraint on economic activity in the coming months. By contrast, no contacts cite significant upside risks to growth in the commercial property sector, although Boston is expected to remain a magnet for investors. SECOND DISTRICTNEW YORK Manhattan's office market strengthened somewhat in July, as leasing activity picked up and vacancy rates edged down. Asking rents for Class A office space rose modestly and continued to run more than 10 percent ahead of a year earlier. A real estate contact also reports that retailers have started leasing more ground-floor space in apartment buildings that have recently reached full occupancy. Small- to medium-sized banks in the District report a noticeable pickup in overall loan demand. Particularly widespread increases in demand were reported for both residential and commercial mortgage loans, while demand for consumer loans was little changed. As was the case in the last report, demand for commercial & industrial loans decreased. Bankers also indicate steady demand for refinancing. Respondents indicate continued decreases in spreads of loan rates over costs of funds for all loan categories--particularly commercial & industrial loans and commercial mortgages. Respondents also note continued declines in the average deposit rate. Finally, bankers report declining delinquency rates, particularly on commercial & industrial loans and residential mortgages. THIRD DISTRICTPHILADELPHIA Overall, nonresidential real estate activity has continued to grow slowly since the last Beige Book. As Center City Philadelphia attracts more apartments and condos--new construction and conversions--the
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EIGHTH DISTRICTST. LOUIS Commercial and industrial real estate conditions were mixed throughout most of the District. A contact in northeast Arkansas reported that except for Jonesboro and Paragould, overall commercial real estate activity remains weak in the region. A contact in Louisville noted that compared with the first five months of 2012, the growth of office leasing activity has slowed. A contact in St. Louis reported moderate improvement in office real estate activity and strong demand in the industrial real estate market. Commercial and industrial construction activity improved throughout most of the District. Contacts reported several commercial construction projects in Jonesboro, Arkansas, and in Bowling Green, Kentucky, while contacts in Louisville noted new speculative construction plans in nearby Jeffersonville, Indiana. NINTH DISTRICTMINNEAPOLIS Commercial real estate markets continued to expand. Vacancy rates for Minneapolis office and industrial properties declined over the past year and were expected to decline further, according to a real estate consulting firm. Several large transactions were announced since the last report. Residential real estate market activity was brisk. Home sales in early August were up 20 percent from the same period a year ago in the Minneapolis-St. Paul area; the inventory of homes for sale was down 30 percent. In the Sioux Falls area, July home sales were up 29 percent, inventory was down 14 percent and the median sales price rose 6 percent relative to a year earlier. TENTH DISTRICTKANSAS CITY Residential and commercial real estate activity continued to improve in July and early August, and construction activity Commercial real estate strengthened. conditions also improved. Construction and sales of commercial real estate properties rose, real estate prices and rents increased, and vacancy rates continued to fall. Several commercial real estate contacts expected uncertainty surrounding the presidential election to slow activity until late in the
exceptions included car dealerships, gas stations and doctors' offices. A North Carolina real estate agent reported that purchasing activity had picked up markedly among his investment clients, which he attributed to national firms being increasingly attracted to the region. A few pockets of improvement in both leasing and construction activity were noted in eastern South Carolina, which has benefited from an expansion in the aerospace industry, and in northern West Virginia, where gains were driven by natural gas drilling. SIXTH DISTRICTATLANTA Apartment sector gains continued to drive improvements in the District's commercial real estate markets. Occupancy levels were described as high and rental rates rose further. Contacts indicated that the region's office market continued to make small improvements, while the industrial and retail sectors cited some weakening in demand from earlier in the year. Commercial contractors indicated that the pace of construction improved somewhat from earlier in the year, while backlogs have also risen in many areas. Most anticipated that construction activity will likely mirror last year's levels through the end of the year. Some contacts suggested that 2012 would be the bottom of the market, with improvements expected next year. SEVENTH DISTRICTCHICAGO Multi-family construction remained an area of strength, and residential single-family construction increased slightly. Demand for nonresidential construction also continued to gradually increase. Industrial building and highway projects rose further. Elevated office and retail vacancy rates remained a drag on new commercial construction, but contacts indicated that demand for office space was slowly improving. That said, a commercial real estate broker noted that companies lack the confidence to make long-term real estate commitments, as many continue to negotiate for contracts with opt-out provisions after two to three years into their lease agreements.
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Q2 2012
year. Developers reported that access to credit remained unchanged. ELEVENTH DISTRICTDALLAS Office and industrial real estate fundamentals remained healthy over the past six weeks. Leasing activity continued at a good pace and some contacts noted a pick-up in property sales. Outlooks were optimistic but cautious. Since the last report, there were a few signs that investors were becoming less aggressive in pursuing commercial real estate deals, outside of multifamily. TWELFTH DISTRICTSAN FRANCISCO In some parts of the District, a shortage of lower-priced homes and rental units has led to an ongoing increase in construction activity, particularly for multifamily rental projects. Demand for nonresidential space was largely stable overall, with construction activity largely limited to various public projects and remodeling of commercial and industrial space.
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QUARTERLY DATABOOK
NET INVENTORY CHANGE/NET ABSORPTION COMMERCIAL/MULTIFAMILY PROPERTIES
Q2 2012
Net Absorption (Thousands of Square Feet) 100,000 80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 2002Q1 2003Q1 2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1
RELEASES
Office
Retail
Apartment
Net Inventory Change (Thousands of Square Feet) 100,000 80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 2002Q1 2003Q1 2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1
Office
Retail
Apartment
Source: REIS
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Q2 2012
COMMERCIAL/MULTIFAMILY PROPERTIES NET INVENTORY CHANGE LESS NET ABSORPTION THOUSANDS OF SQUARE FEET
Year APARTMENT 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 OFFICE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RETAIL 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: REIS
Q1
Q2
Q3
Q4
Calendar Year
YTD Q2
76,558 54,553 27,224 (6,228) 11,123 19,335 24,525 64,784 1,739 (38,116) (27,214)
22,952 (7,445) (24,225) (20,131) (23,851) (19,332) 15,695 35,264 (17,455) (31,744) (17,994)
9,087 (10,381) (20,472) (57,423) (13,943) (14,686) 9,298 17,798 (71,245) (26,800)
39,590 27,858 3,337 (12,080) 38,538 9,830 50,108 20,566 (45,177) (39,215)
148,187 64,585 (14,136) (95,862) 11,867 (4,853) 99,626 138,412 (132,138) (135,875)
99,510 47,108 2,999 (26,359) (12,728) 3 40,220 100,048 (15,716) (69,860) (45,208)
42,606 13,626 (201) (11,483) (19,558) (10,008) 11,244 30,430 14,963 (1,803) (4,781)
23,707 11,394 (1,996) (21,652) (13,917) (11,669) 13,636 32,270 5,068 (1,804) (2,358)
17,453 8,539 (5,895) (15,582) (13,385) (9,309) 24,037 24,939 7,484 (2,281)
15,574 8,093 (12,298) (16,844) (5,483) 5,429 31,506 17,467 (428) (3,153)
99,340 41,652 (20,390) (65,561) (52,343) (25,557) 80,423 105,106 27,087 (9,041)
66,313 25,020 (2,197) (33,135) (33,475) (21,677) 24,880 62,700 20,031 (3,607) (7,139)
4,956 (1,337) 1,007 102 2,549 1,486 5,331 11,788 3,497 (448) (1,764)
(717) 234 (1,368) (3,892) 43 2,644 9,094 11,282 2,590 1,581 (1,498)
438 2,434 (1,383) 1,390 2,660 1,564 6,474 6,052 1,232 1,161
123 (512) (205) 1,448 2,267 3,825 10,395 5,580 383 (1,292)
4,800 819 (1,949) (952) 7,519 9,519 31,294 34,702 7,702 1,002
4,239 (1,103) (361) (3,790) 2,592 4,130 14,425 23,070 6,087 1,133 (3,262)
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QUARTERLY DATABOOK
AVERAGE RENTS AND VACANCY RATES AT COMMERCIAL/MULTIFAMILY PROPERTIES Average Rents
$/Sq Ft
Q2 2012
$/Month
$35 $30 $25 $20
1200 1000 800 600
$15 $10 $5 $0 2002 2002Q1 2002 2002Q3 2003 2003Q1 2003 2003Q3 2004 2004Q1 2004 2004Q3 2005 2005Q1 2005 2005Q3 2006 2006Q1 2006 2006Q3 2007 2007Q1 2007 2007Q3 2008 2008Q1 2008 2008Q3 2009 2009Q1 2009 2009Q3 2010 2010Q1 2010 2010Q3 2011 2011Q1 2011 2011Q3 2012 2012Q1
1Q3 2011Q3 2Q1 2012Q1
400 200 0
Office
Retail
Apartment(RightScale)
Average Vacancy Rates

percent 20 18 16 14 12 10 8 6 4 2 0 1Q1 2011Q1 2002Q1 2Q1 2Q3 2002Q3 3Q1 2003Q1 3Q3 2003Q3 4Q1 2004Q1 4Q3 2004Q3 5Q1 2005Q1 5Q3 2005Q3 6Q1 2006Q1 6Q3 2006Q3 7Q1 2007Q1 7Q3 2007Q3 8Q1 2008Q1 8Q3 2008Q3 9Q1 2009Q1 9Q3 2009Q3 0Q1 2010Q1 0Q3 2010Q3
Office
Retail
Apartment
Source: REIS
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AVERAGE RENTS AND VACANCY RATES AT COMMERCIAL/MULTIFAMILY PROPERTIES
Q2 2012
Average Asking Rents

Q2 Yearoveryear % change
Average Vacancy Rates (percent) Q2 Yearover-year change
Year
Q1
Q2 880 894 909 930 962 1,002 1,046 1,039 1,032 1,053 1,081 $ $ $ $ $ $ $ $ $ $
Q3 886 897 917 938 975 1,015 1,052 1,033 1,038 1,060 $ $ $ $ $ $ $ $ $ $
Q4 889 902 921 944 982 1,026 1,050 1,026 1,043 1,064
Q1 5.6 6.8 7.2 6.6 5.9 6.0 6.0 7.4 8.0 6.2 4.9
Q2 5.8 6.7 6.9 6.4 5.6 5.8 6.1 7.7 7.8 5.9 4.7
Q3 5.9 6.6 6.7 5.8 5.5 5.7 6.2 7.9 7.1 5.6
Q4 6.3 6.9 6.7 5.7 5.8 5.7 6.7 8.0 6.6 5.2
APARTMENT (per month) 2002 $ 877 $ 2003 $ 892 $ 2004 $ 904 $ 2005 $ 925 $ 2006 $ 952 $ 2007 $ 991 $ 2008 $ 1,035 $ 2009 $ 1,045 $ 2010 $ 1,028 $ 2011 $ 1,047 $ 2012 $ 1,070 $ OFFICE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RETAIL 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: REIS (per sq. ft) $ 25.55 $ 24.45 $ 23.76 $ 23.80 $ 24 64 24.64 $ 26.65 $ 28.98 $ 28.78 $ 27.57 $ 27.66 $ 28.10 (per sq. ft) $ 16.38 $ 16.76 $ 17.22 $ 17.74 $ 18.35 $ 19.08 $ 19.54 $ 19.40 $ 19.06 $ 18.97 $ 19.00
2% 2% 2% 3% 4% 4% -1% -1% 2% 3%
0.9 0.2 -0.5 -0.8 0.2 0.3 1.6 0.1 -1.9 -1.2
$ $ $ $ $ $ $ $ $ $ $
25.21 24.17 23.71 23.95 25.02 25 02 27.39 29.24 28.39 27.53 27.73 28.17
$ $ $ $ $ $ $ $ $ $
24.95 24.01 23.70 24.11 25.47 25 47 27.99 29.37 28.11 27.50 27.84
$ $ $ $ $ $ $ $ $ $
24.76 23.89 23.70 24.30 26.00 26 00 28.50 29.18 27.79 27.53 27.96
-4% -2% 1% 4% 9% 7% -3% -3% 1% 2%
14.7 16.3 17.0 16.1 14.2 14 2 13.1 12.9 15.2 17.3 17.6 17.2
15.3 16.6 16.9 15.5 13.9 13 9 12.8 13.2 16.0 17.5 17.5 17.2
15.7 16.8 16.7 15.1 13.5 13 5 12.5 13.8 16.6 17.6 17.4
16.0 17.0 16.4 14.7 13.4 13 4 12.6 14.5 17.0 17.6 17.3
1.3 0.3 -1.4 -1 6 -1.6 -1.1 0.4 2.8 1.5 0.0 -0.3
$ $ $ $ $ $ $ $ $ $ $
16.47 16.86 17.33 17.88 18.50 19.23 19.60 19.27 19.01 18.97 19.03
$ $ $ $ $ $ $ $ $ $
16.58 16.98 17.49 18.06 18.73 19.33 19.59 19.21 19.01 18.97
$ $ $ $ $ $ $ $ $ $
16.68 17.14 17.62 18.22 18.92 19.46 19.52 19.13 18.99 18.99
2% 3% 3% 3% 4% 2% -2% -1% 0% 0%
7.4 7.2 7.2 7.0 6.9 7.2 7.7 9.5 10.8 10.9 10.9
7.3 7.2 7.1 6.7 6.9 7.3 8.1 10.0 10.9 11.0 10.8
7.3 7.3 7.0 6.8 7.0 7.3 8.4 10.3 10.9 11.0
7.3 7.2 7.0 6.8 7.1 7.5 8.9 10.6 11.0 11.0
-0.1 -0.1 -0.4 0.2 0.4 0.8 1.9 0.9 0.1 -0.2
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QUARTERLY DATABOOK
Q2 2012
MULTIFAMILY BUILDING PERMITS, STARTS AND COMPLETIONS Thousands of Units Permitted, Started and Completed in Structures with 5 or More Units, Seasonally Adjusted Annual Rate
1968 to present
1400 1200 1000 800 600 400 200 0 1968 1969 1971 1972 1974 1975 1977 1979 1980 1982 1983 1985 1987 1988 1990 1991 1993 1994 1996 1998 1999 2001 2002 2004 2006 2007 2009 2010 2012
Completions 5+
Permits 5+
Starts 5+
Median Starts 1997 - 2007 (300.5)
1996 to present p
600
500
400
300
200
100
0 1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Completions 5+
Permits 5+
Starts 5+
Median Starts 1997 - 2007 (300.5)
Source: U S Census Bureau U.S.

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Q2 2012
MULTIFAMILY BUILDING PERMITS, STARTS AND COMPLETIONS Number of Units Permitted, Started and Completed in Structures with 5 or More Units, Seasonally Adjusted Annual Rate
Permits
Thousands of Units Starts Completions
Percent Change Permits Starts Completions Year-over-year -6.2% -2.4% 1.8% -2.1% 1.8% 5.2% 1.3% 2.4% 5.9% -3.9% 6.3% 2.8% -1.3% -6.0% -6.5% -5.3% -17.7% -4.1% -59.0% -63.4% 11.7% 7.2% 30.4% 60.5%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
329 335 341 346 366 389 384 359 295 121 135 176
299 293 308 315 303 311 293 277 266 97 104 167
305 281 288 261 287 258 284 253 277 260 147 130
1.8% -7.8% 2.6% -9.5% 10.0% -10.1% 10.2% -11.0% 9.6% -6.3% -43.6% -11.0%
Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 June 2012 July 2012 Percent change Jul 2011 to July 2012
186 189 167 199 235 223 212 204 281 226 272 248 274 47.3%
176 152 219 175 239 153 193 240 215 234 178 209 229 30.1%
142 135 166 126 123 137 140 136 136 170 121 132 209 47.2%
Month-over-month -6.1% 6.7% 29.1% 1.6% -13.6% -4.9% -11.6% 44.1% 23.0% 19.2% -20.1% -24.1% 18.1% 36.6% -2.4% -5.1% -36.0% 11.4% -4.9% 26.1% 2.2% -3.8% 24.4% -2.9% 37.7% -10.4% 0.0% -19.6% 8.8% 25.0% 20.4% -23.9% -28.8% -8.8% 17.4% 9.1% 10.5% 9.6% 58.3%
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QUARTERLY DATABOOK
Q2 2012
NEW PRIVATELY OWNED HOUSING UNITS STARTED, BY PURPOSE Thousands of Units 1Family Units 369 485 471 392 382 433 372 278 260 333 265 188 162 194 163 103 78 124 138 105 114 142 119 96 90 123 118 100 105 152 Units in Buildings with 2 or More Units For For Percent Total Rent Sale for Rent 79 91 97 86 82 88 85 80 62 77 85 84 69 89 74 51 36 30 24 19 20 30 42 24 36 41 53 49 49 58 49 55 46 51 42 46 48 47 38 42 48 60 52 67 54 43 31 25 19 16 16 26 36 21 30 38 48 44 45 53 30 36 51 35 39 42 37 33 24 35 37 24 17 22 20 8 5 5 5 3 4 4 6 3 6 3 5 5 4 5 62% 60% 47% 59% 51% 52% 56% 59% 61% 55% 56% 71% 75% 75% 73% 84% 86% 83% 79% 84% 80% 87% 86% 88% 83% 93% 91% 90% 92% 91%
Quarter 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2
120 100
TOTAL 448 576 568 478 464 521 457 358 322 410 350 272 231 283 237 154 114 154 162 124 134 172 161 120 126 164 171 149 154 210
2+ unit for sale 2+ unit for rent
Thousands of units
80 60 40 20 0 2005Q1
2006Q1
2007Q1
2008Q1
2009Q1
2010Q1
2011Q1
2012Q1

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Q2 2012
Value of Commercial Real Estate Construction PutIn-Place

July 2012 Data
September 5, 2012
The value of selected commercial real estate (CRE)-related private construction put-inplace sagged in the month of July, but was higher than the pace of construction in July 2011. The $179.6 billion seasonally adjusted annual rate in July was 0.8 percent lower than the June rate, but 13.4 percent higher than the July 2011 pace. The pace of construction in July was 33% higher than its recession low and 43% below its prerecession high. Private Multifamily new construction activity bucked the trend and continued to grow in July. Julys seasonally adjusted annual pace of $22.0 billion was 2.8 percent higher than Junes $21.4 billion and 44.5 percent higher than last Julys rate. Year-to-date, new multifamily construction is 40.1 percent higher than last years pace. The pace of construction of private office, health care and retail, wholesale and selected services properties fell during the month, while construction of lodging was flat. Each of these categories has increased compared to 2011 on a year-to-date basis. The value of private Office construction putin-place fell by 0.1 percent in July. Julys seasonally adjusted annual pace of $25.3 billion was 10.2 percent higher than last Julys rate. Year-to-date, office construction is 10.8 percent higher than last years pace. The pace of construction in July was 18% higher than its recession low and 57% below its pre-recession high. The value of private Health Care construction put-in-place fell 0.5 percent in July. Julys seasonally adjusted annual pace of $30.1 billion was 3.4 percent higher than last Julys rate. Year-to-date, health care construction is 7.1 percent higher than last years pace. The pace of construction in
July was 11% higher than its recession low and 26% below its pre-recession high. The value of private Retail, Wholesale and Selected (referred to as Commercial by the Census Bureau) construction put-in-place fell 1.9 percent in July. Julys seasonally adjusted annual pace of $42.9 billion was 2.8 percent higher than last Julys rate. Year-to-date, retail, wholesale and selected services construction is 12.4 percent higher than last years pace. The pace of construction in July was 24% higher than its recession low and 52% below its prerecession high. The value of Lodging construction put-inplace was flat in July. Julys seasonally adjusted annual pace of $10.7 billion was 35.7 percent higher than last Julys rate. Year-to-date, lodging construction is 25 percent higher than last years pace. The pace of construction in July was 36% higher than its recession low and 72% below its pre-recession high. The value of Manufacturing construction put-in-place fell 2.1 percent in July. Julys seasonally adjusted annual pace of $48.7 billion was 17.4 percent higher than last Julys rate. Year-to-date, manufacturing construction is 31 percent higher than last years pace. The pace of construction in July was 65% higher than its recession low and 25% below its pre-recession high.
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VALUE OF CONSTRUCTION PUT-IN-PLACE Seasonally Adjusted Annual Rate
Q2 2012
Value of Selected Private CRE-Related Construction Put-In-Place, $millions 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2000 - Jan 2001 - Jan 2002 - Jan 2003 - Jan 2004 - Jan 2005 - Jan 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2011 - Jan 2011 - Jan 2012 - Jan
RELEASES
Year-Over-Year % Change in Trailing Three Month Selected Private CRE-Related Construction 30% 20% 10% 0% -10% -20% -30% -40% -50% 2000 - Jan 2001 - Jan 2002 - Jan 2003 - Jan 2004 - Jan 2005 - Jan 2006 - Jan 2007 - Jan 2008 - Jan 2009 - Jan 2010 - Jan 2012 - Jan
Source: MBA, U.S. Census Bureau

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VALUE OF CONSTRUCTION PUT-IN-PLACE
Q2 2012
Seasonally Adjusted Annual Rate Value of Selected Private CRE-Related Construction Put-In-Place, $millions Multifamily 60,000 50,000 40,000 30,000 20,000 10,000 0 Office 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Lodging 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 50,000 40,000 30,000 20,000 10,000 0 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan
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Commercial(e.g.,retail&warehouse) 100,000 80,000 60,000 40,000 20,000 0 Manufacturing 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 HealthCare
Source:MBA,U.S.CensusBureau
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VALUE OF CONSTRUCTION PUT-IN-PLACE
Q2 2012
Seasonally Adjusted Annual Rate Value of Selected Private CRE-Related Construction Put-In-Place, $millions
Selected Private CRE-Related Types of Construction Multifamily Commercial Office Lodging Health Care Manufacturing Total % Change Month-overMonth
2010 - Jul 2010 - Aug 2010 - Sep 2010 - Oct 2010 - Nov 2010 - Dec 2011 - Jan 2011 - Feb 2011 - Mar 2011 - Apr 2011 - May 2011 - Jun 2011 - Jul 2011 - Aug 2011 - Sep 2011 - Oct 2011 - Nov 2011 - Dec 2012 - Jan 2012 - Feb 2012 - Mar 2012 - Apr 2012 - May 2012 - Jun 2012 - Jul Jun - Jul Jul - Jul Trough to current Peak to current
14,889 13,073 14,268 14,159 14,395 13,678 13,452 13,324 13,690 13,800 13,634 14,582 15,199 15,931 15,168 15,552 16,364 16,378 17,108 17,784 18,028 19,631 20,642 21,369 21,963
34,543 36,080 35,445 35,152 35,121 34,608 35,419 36,061 36,906 38,560 39,940 40,929 41,713 42,494 40,923 41,129 41,938 41,902 43,557 42,798 43,234 43,382 44,184 43,694 42,868
22,384 23,297 24,251 23,683 22,426 23,173 21,979 21,535 21,633 21,631 22,894 23,366 22,967 23,156 22,645 23,003 22,570 23,001 23,658 23,306 24,552 24,294 25,335 25,349 25,311
10,764 10,772 10,314 9,746 9,647 9,564 7,974 7,994 8,140 7,838 7,968 8,408 7,852 8,089 8,238 8,176 8,696 9,232 9,053 8,976 10,225 10,313 10,350 10,650 10,652
29,011 29,598 30,194 29,458 29,765 29,764 27,125 28,110 28,330 27,641 27,357 28,804 29,082 28,972 29,503 28,577 29,529 29,871 29,961 30,644 29,560 30,377 30,282 30,208 30,071
39,385 37,919 36,652 35,295 33,279 31,370 29,525 31,892 35,062 33,294 38,292 43,825 41,479 44,214 46,497 45,410 44,918 50,025 44,771 46,640 46,762 47,873 49,446 49,721 48,693
150,976 150,739 151,124 147,493 144,633 142,157 135,474 138,916 143,761 142,764 150,085 159,914 158,292 162,856 162,974 161,847 164,015 170,409 168,108 170,148 172,361 175,870 180,239 180,991 179,558
-4.4% -0.2% 0.3% -2.4% -1.9% -1.7% -4.7% 2.5% 3.5% -0.7% 5.1% 6.5% -1.0% 2.9% 0.1% -0.7% 1.3% 3.9% -1.4% 1.2% 1.3% 2.0% 2.5% 0.4% -0.8%
2.8% 44.5% 68% 60%
1.9% 2.8% 24% 52%
0.1% 10.2% 18% 57%
0.0% 35.7% 36% 72%
0.5% 3.4% 11% 26%
2.1% 17.4% 65% 25%
0.8% 13.4% 33% 43%
Source: MBA, U.S. Census Bureau
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Q2 2012
QUARTERLY SALES OF LARGER ($2.5 MILLION+) COMMERCIAL/MULTIFAMILY PROPERTIES Billions of dollars, Properties and portfolios $2.5 million and greater
$160 $140 $120 $100 $80 $60 $40 $20 $2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2
Apartment Retail Industrial Office
Source: Real Capital Analytics.
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
Page 39
QUARTERLY DATABOOK
Q2 2012
QUARTERLY SALES OF LARGER ($2.5 MILLION+) COMMERCIAL/MULTIFAMILY PROPERTIES Billions of dollars, Properties and portfolios $2.5 million and greater
Year APARTMENT 2007 2008 2009 2010 2011 2012 INDUSTRIAL 2007 2008 2009 2010 2011 2012 OFFICE 2007 2008 2009 2010 2011 2012 RETAIL 2007 2008 2009 2010 2011 2012 TOTAL 2007 2008 2009 2010 2011 2012
Q1
Q2
Q3
Q4
Total Percent Sales change
YTD Q2 Percent Sales change
$ 22.64 $ 14.34 $ 2.88 $ 5.46 $ 9.12 $ 12.37
$ $ $ $ $ $
20.99 10.53 3.97 5.96 14.11 16.22
$ $ $ $ $
24.53 10.99 4.17 10.43 15.04
$ 37.37 $ 5.80 $ 6.20 $ 13.37 $ 18.08
$ $ $ $ $
105.53 41.66 17.22 35.22 56.35
8% -61% -59% 104% 60%
$ $ $ $ $ $
43.64 24.87 6.84 11.42 23.24 28.59
-9% -43% -72% 67% 104% 23%
$ 14.44 $ 9.55 $ 2.14 $ 2.93 $ 4.36 $ 5.81
$ 16.43 $ 6.97 $ 3.04 $ 3.66 $ 14.98 $ 8.42
$ 17.31 $ 6.17 $ 2.30 $ 4.91 $ 7.44
$ 12.50 $ 4.04 $ 3.37 $ 8.49 $ 8.58
$ $ $ $ $
60.69 26.73 10.85 20.00 35.36
11% -56% -59% 84% 77%
$ $ $ $ $ $
30.87 16.51 5.19 6.59 19.34 14.23
10% -47% -69% 27% 193% -26%
$ $ $ $ $ $
78.80 18.20 3.91 5.09 10.78 14.38
$ $ $ $ $ $
59.40 17.33 3.09 9.81 16.44 14.84
$ $ $ $ $
45.26 14.80 5.28 10.53 16.67
$ 30.20 $ 8.16 $ 5.09 $ 20.56 $ 20.72
$ $ $ $ $
213.67 58.48 17.37 45.98 64.61
53% -73% -70% 165% 41%
$ $ $ $ $ $
138.20 35.53 7.00 14.89 27.23 29.21
141% -74% -80% 113% 83% 7%
$ 27.28 $ 9.24 $ 2.64 $ 3.53 $ 6.62 $ 12.73
$ 22.51 $ 6.48 $ 2.58 $ 4.19 $ 16.48 $ 11.63
$ 17.53 $ 5.09 $ 3.43 $ 6.68 $ 8.86
$ 12.70 $ 4.05 $ 6.29 $ 8.21 $ 11.81
$ $ $ $ $
80.01 24.86 14.95 22.60 43.77
29% -69% -40% 51% 94%
$ $ $ $ $ $
49.79 15.72 5.22 7.71 23.10 24.36
97% -68% -67% 48% 200% 5%
$ $ $ $ $ $
143.16 51.33 11.57 17.01 30.88 45.29
$ $ $ $ $ $
119.33 41.30 12.68 23.61 62.02 51.11
$ $ $ $ $
104.63 37.05 15.18 32.55 48.01
$ $ $ $ $
92.77 22.05 20.95 50.63 59.19
$ $ $ $ $
459.90 151.73 60.39 123.80 200.10
30% -67% -60% 105% 62%
$ $ $ $ $ $
262.50 92.63 24.25 40.62 92.91 96.39
66% -65% -74% 67% 129% 4%
OUTLOOK
Page 40
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
10%
12%
$250
$300
$350
$200
$100
$150
0% $50 $0
2%
4%
6%
8%
Capitalization rate
QUARTERLY DATABOOK
Properties and portfolios $2.5 million and greater
QUARTERLY SALES PRICES OF LARGER ($2.5 MILLION+) COMMERCIAL/MULTIFAMILY PROPERTIES
Sales price per unit or sq. ft. ($/sq. ft, or $1000/unit for apartment)
OUTLOOK
Apartment Industrial Office Retail Total
ENVIRONMENT
Apartment
PRODUCTION
Industrial
Office
OUTSTANDING
Retail
SERVICING
2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2001 Q1 01 2001 Q2 01 2001 Q3 01 2001 Q4 01 2002 Q1 02 02 2002 Q2 02 2002 Q3 02 2002 Q4 03 2003 Q1 03 2003 Q2 03 2003 Q3 03 2003 Q4 04 2004 Q1 04 2004 Q2 04 2004 Q3 04 2004 Q4 05 2005 Q1 05 2005 Q2 05 2005 Q3 05 2005 Q4 06 2006 Q1 06 2006 Q2 06 2006 Q3 06 2006 Q4 07 2007 Q1 07 2007 Q2 07 2007 Q3 07 2007 Q4 08 2008 Q1 08 2008 Q2 08 2008 Q3 08 2008 Q4 09 2009 Q1 09 2009 Q2 09 2009 Q3 09 2009 Q4 0 2010 Q1 0 2010 Q2 0 2010 Q3 0 2010 Q4 1 2011 Q1 1 2011 Q2 1 2011 Q3 1 2011 Q4 2 2012 Q1 2 2012 Q2
Q2 2012
RELEASES
Page 41
QUARTERLY DATABOOK
Q2 2012
QUARTERLY SALES PRICES OF LARGER ($2.5 MILLION+) COMMERCIAL/MULTIFAMILY PROPERTIES Properties and portfolios $2.5 million and greater
Price per unit or sq. ft. Q2 Yearover-year % change 6% -5% -6% 5% 7% 8%
Capitalization Rate Q2 Yearover-year % change 1% 3% 4% 2% -6% -4%
Year APARTMENT 2007 2008 2009 2010 2011 2012 INDUSTRIAL 2007 2008 2009 2010 2011 2012 OFFICE 2007 2008 2009 2010 2011 2012 RETAIL 2007 2008 2009 2010 2011 2012 TOTAL 2007 2008 2009 2010 2011 2012
Q1 $ 95 $ 91 $ 81 $ 105 $ 97 $ 105
Q2
Q3
Q4 $ 95 $ 84 $ 82 $ 101 $ 105
Q1 6.2% 6.2% 6.6% 6.8% 6.5% 6.2%
Q2 6.2% 6.4% 6.7% 6.8% 6.4% 6.2%
Q3 6.3% 6.5% 7.1% 6.5% 6.3%
Q4 6.2% 6.5% 6.7% 6.5% 6.3%
($1000/unit) $ 95 $ 105 $ 90 $ 108 $ 84 $ 75 $ 88 $ 107 $ 94 $ 110 $ 101 ($/sq. ft) 74 $ 70 $ 62 $ 54 $ 58 $ 58
$ $ $ $ $ $
70 71 66 50 54 67
$ $ $ $ $ $
76 68 58 64 53
$ $ $ $ $
72 67 49 53 60
3% -5% -11% -14% 8% 0%
7.0% 7.2% 7.9% 8.1% 7.9% 7.8%
7.0% 7.6% 8.1% 8.4% 7.8% 7.7%
7.0% 7.4% 8.6% 8.5% 7.9%
7.4% 7.7% 8.6% 8.4% 7.8%
-5% 8% 7% 3% -7% 0%
$ $ $ $ $ $
235 227 237 140 208 209
$ $ $ $ $ $
($/sq. ft) 293 $ 247 270 $ 267 137 $ 189 196 $ 205 214 $ 217 206 ($/sq. ft) 188 $ 174 203 $ 178 153 $ 147 129 $ 145 146 $ 195 170
$ $ $ $ $
256 203 152 217 210
43% -8% -49% 43% 9% -4%
6.7% 7.1% 7.6% 7 6% 8.5% 7.5% 7.2%
6.5% 7.0% 7.8% 7 8% 8.0% 7.5% 7.1%
6.7% 7.2% 8.0% 8 0% 7.6% 7.3%
6.8% 7.3% 8.8% 8 8% 7.4% 7.4%
-8% 8% 11% 2% -6% -5%
$ $ $ $ $ $
173 185 147 133 163 159
$ $ $ $ $ $
$ $ $ $ $
169 176 135 154 177
20% 8% -24% -16% 13% 17%
6.8% 6.9% 7.2% 8.1% 7.6% 7.3%
6.7% 6.8% 7.3% 7.9% 7.6% 7.2%
6.7% 6.9% 7.9% 7.8% 7.6%
6.7% 7.1% 8.0% 7.7% 7.4%
-3% 2% 8% 8% -4% -5%
$ $ $ $ $ $
($1000/unit or $/sq. ft)* 153 $ 155 $ 140 $ 122 $ 132 $ 134 $ 113 $ 94 $ 104 $ 98 $ 108 $ 120 $ 116 $ 104 $ 120 $ 128 $ 115
122 115 93 115 124
29% -15% -29% 16% -4% 11%
6.7% 6.8% 7.3% 7.8% 7.3% 7.0%
6.5% 6.9% 7.4% 7.7% 7.3% 6.9%
6.6% 7.0% 7.8% 7.4% 7.1%
6.6% 7.1% 7.9% 7.4% 7.1%
-4% 6% 7% 4% -5% -6%
OUTLOOK
Page 42
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Q2 2012
COMMERCIAL/MULTIFAMILY PROPERTY PRICES AS REFLECTED IN SELECTED INDICES Re-Indexed Values of the Moody's/REAL CPPI, NCREIF Transaction Based Index, and Green Street Advisors CPPI December 2000 = 100 200 190 180 170 160 150 140 130 120 110 100 90 Dec2000 Jun2001 Dec2001 Jun2002 Dec2002 Jun2003 Dec2003 Jun2004 Dec2004 Jun2005 Dec2005 Jun2006 Dec2006 Jun2007 Dec2007 Jun2008 Dec2008 Jun2009 Dec2009 Jun2010 Dec2010 Jun2011 Jan2012 Dec2011 Jun2012 May2012
RELEASES
Page 43
Moodys/REALCPPI
NCREIFTBI
GSACPPI
January 2007 = 100 y 120 110 100 90 80 70 60 50 Jan2007 May2007 Jan2008 May2008 Jan2009 May2009 Jan2010 May2010 Jan2011 May2011 Sep2007 Sep2008 Sep2009 Sep2010 Sep2011
Moody's/REALCPPI
NCREIFTBI
GSACPPI
Source: Mortgage Bankers Association, Real Capital Analytics, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors
OUTLOOK ENVIRONMENT PRODUCTION OUTSTANDING SERVICING
QUARTERLY DATABOOK
Q2 2012
COMMERCIAL/MULTIFAMILY PROPERTY PRICES AS REFLECTED IN SELECTED INDICES Changes in the Moody's/REAL CPPI , NCREIF Transaction Based Index and Green Street Advisors CPPI
Year-over-year Change Moody's/ REAL CPPI 2001 -- December 2002 -- December 2003 -- December 2004 -- December 2005 -- December 2006 -- December 2007 -- December 2008 -- December 2009 -- December 2010 -- December 2011 -- December 0.7% 7.0% 7.6% 13.1% 17.0% 8.9% 11.7% -17.3% -26.1% 10.0% 13.2% NCREIF TBI 0.6% 5.1% 2.8% 8.6% 22.6% 18.9% 4.5% -14.7% -20.0% 17.5% 4.7% Green Street Advisors CPPI 0.4% 1.9% 10.5% 15.9% 13.6% 11.3% 7.5% -29.4% -2.1% 21.6% 12.2% Month-over month Green Street Advisors CPPI 0.9% 1.4% 1.4% 2.8% 0.1% 2.1% 0.7% 0.2% 1.2% 3.6% 1.8% 3.1% 0.1% 0.0% 1.1% 0.0% 0.0% 0.7% 0.0% 0.0% 0.3% 0.7% 0.1% 1.7% 0.0% 94% Month-over month Moody's/ REAL CPPI 1.1% 0.8% 2.5% 0.3% 0.2% 0.8% 1.4% 0.6% 1.0% 1.1% 1.4% 1.0% 0.9% 1.3% -0.4% 2.4% 2.2% 1.5% -0.5% 1.2% 0.8% 0.2% -0.4% 1.0% 0.5% 79%
Quarter-over-quarter Moody's/REAL CPPI 2010 -- June 2010 -- July 2010 -- August 2010 -- September 2010 -- October 2010 -- November 2010 -- December 2011 -- January 2011 -- February 2011 -- March 2011 -- April 2011 -- May 2011 -- June 2011 -- July 2011 -- August 2011 -- September 2011 -- October 2011 -- November 2011 -- December 2012 -- January 2012 -- February 2012 -- March 2012 -- April 2012 -- May 2012 -- June Current price relative to peak 2.6% NCREIF TBI 8.5%
3.7%
-6.3%
2.4%
12.2%
2.7%
-0.1%
3.4%
-1.2%
3.3%
10.6%
3.2%
-4.2%
2.2%
2.2%
1.2%
-0.1% 83%
Source: Mortgage Bankers Association, Real Capital Analytics, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors
OUTLOOK
Page 44
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
3. Production
Q2 2012
Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations

July 31, 2012
Commercial/multifamily mortgage origination volumes during the second quarter of 2012 were up 25 percent from second quarter 2011 levels, and up 39 percent from the first quarter of 2012, according to the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Commercial and multifamily mortgage lending and borrowing continued to pick up in the second quarter, said Jamie Woodwell, MBAs Vice President of Commercial Real Estate Research. Low interest rates and continued stabilization and growth in the commercial real estate markets are helping support new loan originations, and every major investor group increased their lending over the quarter. SECOND QUARTER 2012 ORIGINATIONS 25 PERCENT HIGHER THAN SECOND QUARTER 2011 The 25 percent overall increase in commercial/multifamily lending volume, when compared to the second quarter of
2011, was driven by increases in originations for retail and hotel properties. The increase included a 56 percent increase in the dollar volume of loans for retail properties, a 22 percent increase for hotel properties, a 19 percent increase for multifamily properties, a 15 percent increase for office properties, an 11 percent increase in health care property loans. These gains offset a 5 percent decrease in industrial property loans. Among investor types, the dollar volume of loans for commercial bank portfolios increased by 58 percent over last years second quarter. There was also a 50 percent increase in loan volumes for Government Sponsored Enterprises (or GSEs Fannie Mae and Freddie Mac), a 16 percent increase in volumes for conduits for CMBS and a 10 percent increase in volumes for life insurance companies. SECOND QUARTER 2012 ORIGINATIONS 39 PERCENT HIGHER THAN FIRST QUARTER 2012 Second quarter 2012 commercial and multifamily mortgage originations were 39
Commercial/Multifamily Mortgage Bankers Originations Index 2001 quarterly average = 100
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
Page 45
QUARTERLY DATABOOK
Q2 2012
percent higher than originations in the first quarter of 2012. Compared to the first quarter, second quarter originations for hotel properties saw a 147 percent increase. There was a 66 percent increase for office properties, a 47 percent increase for industrial properties, a 33 percent increase for health care properties, a 29 percent increase for retail properties and a 21 percent increase for multifamily properties. Among investor types, between the first and second quarters of 2012, loans for conduits for CMBS saw an increase in loan volume of 302 percent, loans for life insurance companies saw an increase in loan volume of 37 percent, originations for GSEs increased 28 percent and loans for commercial bank portfolios increased by 9 percent. To view the report, please visit the following Web link: http://www.mortgagebankers.org/files/Rese arch/CommercialOriginations/2Q12CMFOrigi nationsSurvey.pdf Detailed statistics on the size and scope of the commercial/multifamily origination market are available from these MBA commercial/multifamily research reports. Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation, 2011 Commercial Real Estate/Multifamily Finance Firms: Annual Origination Volumes, 2011
OUTLOOK
Page 46
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Q2 2012
Commercial/Multifamily Mortgage Bankers Originations Index By Investor Group Origination Volume Index (2001 Avg Qtr = 100) Q1 Q2 Q3 Q4 TOTAL 2007 2008 2009 2010 2011 2012 Conduits 2007 2008 2009 2010 2011 2012 280 132 40 45 83 113 456 19 1 5 26 23 352 130 60 61 126 157 606 9 4 11 80 94 408 289 49 44 109 172 247 116 53 70 138 275 54 61 114 129 Percent Change, Q2-to-Q2 40% -63% -54% 1% 107% 25% 77% -98% -57% 173% 638% 16% -11% -29% -83% -12% 150% 58% -15% -27% -54% 148% 87% 10% 14% 66% 2% -55% 58% 50% $ $ $ $ $ $ $ $ $ $ $ $ Average Loan Size ($millions) Q2 Q3 $ $ $ $ $ $ $ $ $ $ $ $ 15.6 12.3 11.8 11.1 14.0 13.1 18.4 16.5 20.4 37.4 41.3 33.2 $ $ $ $ $ 13.3 10.8 9.9 10.5 14.9 $ $ $ $ $
Q1 13.8 12.3 8.4 9.2 11.9 13.3 18.4 16.0 5.5 45.4 33.7 17.5
Q4 16.0 9.0 11.0 13.0 11.6
206 15 2 16 42
357 6 1 62 31
$ $ $ $ $
14.0 40.4 18.2 30.5 30.5
$ $ $ $ $
52.9 30.9 12.4 69.6 23.9
Commercial Banks 2007 316 2008 228 2009 47 2010 45 2011 77 2012 158
445 129 62 32 169
521 74 86 64 143
$ 10.0 $ 11.2 $ 6.1 $ 4.9 $ 9.0 $ 11.0 $ $ $ $ $ $ $ $ $ $ $ $ 9.9 10.1 13.4 17.0 17.8 19.9 9.8 11.7 11.4 9.8 10.8 14.2
$ 15.7 $ 17.6 $ 6.1 $ 7.0 $ 8.7 $ 9.4 $ $ $ $ $ $ $ $ $ $ $ $ 9.6 10.7 12.5 16.1 19.9 17.7 10.2 10.1 16.8 11.3 12.2 12.7
$ 13.3 $ 6.0 $ 6.4 $ 4.9 $ 11.8
$ 14.0 $ 8.9 $ 8.2 $ 7.6 $ 7.8
Life Insurance Companies 2007 158 175 2008 119 128 2009 41 59 2010 94 147 2011 200 274 2012 220 302 Fannie Mae/Freddie Mac 2007 114 112 2008 185 186 2009 136 189 2010 70 85 2011 112 134 2012 157 201
222 163 69 176 282
163 44 93 250 216
$ $ $ $ $
13.0 13.9 12.4 15.5 20.5
$ 9.7 $ 7.8 $ 15.6 $ 17.0 $ 14.9
181 208 143 120 176
194 164 122 202 236
$ $ $ $ $
14.3 13.3 14.8 12.6 13.8
$ $ $ $ $
10.9 12.0 13.8 13.5 14.3
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
Page 47
QUARTERLY DATABOOK
Origination Volume Index (2001 Avg Qtr = 100) Q1 Q2 Q3 Q4 Multifamily 2007 2008 2009 2010 2011 2012 Office 2007 2008 2009 2010 2011 2012 Retail 2007 2008 2009 2010 2011 2012 Industrial 2007 2008 2009 2010 2011 2012 Hotel 2007 2008 2009 2010 2011 2012 Health Care 2007 2008 2009 2010 2011 2012 180 132 51 49 98 141 321 79 27 35 64 58 384 181 43 85 94 196 254 161 80 57 156 107 762 308 36 20 118 109 471 400 82 26 50 108 195 113 89 67 143 170 302 105 20 55 84 97 459 169 83 75 162 253 286 124 43 123 165 157 2,931 371 84 99 222 271 458 758 224 54 130 144 176 123 74 101 140 220 83 77 138 181
Q2 2012
Average Loan Size ($millions) Q2 Q3 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 12.5 11.0 15.3 11.1 14.3 12.2 21.1 19.0 10.8 19.3 18.5 18.2 12.1 13.5 16.7 10.8 13.6 18.0 $ $ $ $ $ 11.8 12.1 12.9 12.6 13.2 $ $ $ $ $
Commercial/Multifamily Mortgage Bankers Originations Index By Property Type Percent Change, Q2-to-Q2 18% -42% -21% -25% 114% 19% 19% -65% -81% 180% 54% 15% 34% -63% -51% -9% 116% 56% -7% -57% -65% 183% 34% -5% 330% -87% -77% 18% 125% 22% -14% 66% -70% -76% 141% 11% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Q1
Q4 15.0 11.4 12.4 13.0 13.5
11.8 12.6 9.5 9.4 11.9 14.2 24.0 15.7 9.6 13.4 17.7 14.8 11.8 15.8 11.0 14.5 15.0 18.9 10.5 11.6 18.4 9.4 14.1 12.9 31.6 40.0 67.5 12.3 30.8 19.6 8.4 7.8 3.7 3.9 7.1 6.2
191 76 33 45 91
100 28 29 79 56
$ $ $ $ $
17.4 15.6 14.9 14.6 19.1
$ $ $ $ $
12.0 10.8 15.5 16.5 11.7
264 185 71 84 222
264 47 95 184 169
$ $ $ $ $
10.4 15.5 10.8 11.0 20.9
$ $ $ $ $
9.1 7.5 13.6 18.9 12.3
249 151 64 145 142
196 48 76 150 214
$ 10.2 $ 9.4 $ 7.2 $ 13.8 $ 17.0 $ 9.1 $ $ $ $ $ $ 55.8 38.5 29.0 47.5 43.0 44.9
$ 10.2 $ 9.1 $ 8.9 $ 14.6 $ 12.4
$ $ $ $ $
9.4 8.8 11.4 12.6 16.2
815 107 57 46 231
3,035 36 74 198 110
$ $ $ $ $
33.8 23.1 35.3 22.0 39.0
$ 199.5 $ 22.5 $ 48.7 $ 50.6 $ 20.1
1,081 442 183 99 91
540 288 289 301 229
$ 11.7 $ 8.5 $ 4.7 $ 5.1 $ 9.5 $ 5.4
$ 14.6 $ 6.5 $ 5.9 $ 9.3 $ 7.2
$ $ $ $ $
10.7 6.8 10.7 20.7 12.4
OUTLOOK
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ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
QUARTERLY DATABOOK
Q2 2012
QUARTERLY ISSUANCE OF COMMERCIAL MORTGAGE BACKED SECURITIES (CMBS) and COMMERCIAL REAL ESTATE COLLATERALIZED DEBT OBLIGATIONS (CDOs)
Billions of Dollars
$80
$70
$60
$50
$40
$ $30
$20
$10
$2000 Q1 2000 Q2 2000 Q3 2000 Q4 2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2
CMBS
CRE CDO/Re-Remics
Source: Commercial Real Estate Direct
OUTLOOK
ENVIRONMENT
PRODUCTION
OUTSTANDING
SERVICING
RELEASES
Page 49
QUARTERLY DATABOOK
Q2 2012
QUARTERLY ISSUANCE OF COMMERCIAL MORTGAGE BACKED SECURITIES (CMBS) and COMMERCIAL REAL ESTATE COLLATERALIZED DEBT OBLIGATIONS (CRE CDOs)/RE-REMICS
Billions of Dollars Annual Percent Total change YTD Q2 Percent Total change
Year
Q1
Q2
Q3
Q4
U.S. CMBS ISSUANCE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ $ $ $ $ $ $ $ $ $ $ 9.74 14.94 18.99 33.13 46.01 60.85 5.91 8.24 5.19 $ $ $ $ $ $ $ $ $ $ $ 14.93 20.45 24.50 39.37 42.18 75.92 6.24 1.79 2.91 7.66 11.42 $ $ $ $ $ $ $ $ $ $ 12.81 17.51 21.47 38.27 42.25 60.10 1.93 9.62 $ $ $ $ $ $ $ $ $ $ 16.54 25.09 28.82 57.40 72.25 33.30 3.18 6.18 4.46 $ $ $ $ $ $ $ $ $ $ 54.03 77.99 93.78 168.17 202.69 230.17 12.15 4.97 11.01 29.97 -24% 44% 20% 79% 21% 14% -95% -59% 121% 172% $ $ $ $ $ $ $ $ $ $ $ 24.67 35.39 43.49 72.50 88.19 136.77 12.15 1.79 2.91 15.90 16.61 -9% 43% 23% 67% 22% 55% -91% -85% 62% 447% 4%
CRE CDO/RE-REMICS ISSUANCE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ $ $ $ $ $ $ $ $ $ $ 11.56 17.31 20.16 37.42 52.43 67.46 5.91 8.24 5.19 $ $ $ $ $ $ $ $ $ $ $ 18.22 21.61 26.98 43.79 49.37 89.48 6.24 2.51 3.05 7.66 11.42 $ $ $ $ $ $ $ $ $ $ 14.69 18.56 23.86 44.99 52.95 65.19 0.32 2.25 9.62 $ $ $ $ $ $ $ $ $ $ 22.58 26.31 30.59 63.30 84.52 36.70 3.18 7.11 4.46 $ $ $ $ $ $ $ $ $ $ 67.05 83.79 101.58 189.50 239.26 258.82 12.15 6.01 12.41 29.97 25% 21% 87% 26% 8% -95% -51% 107% 141% $ $ $ $ $ $ $ $ $ $ $ 29.78 38.92 47.13 81.21 101.80 156.94 12.15 2.51 3.05 15.90 16.61 31% 21% 72% 25% 54% -92% -79% 22% 421% 4% $ $ $ $ $ $ $ $ $ $ $ 1.82 2.37 1.16 4.29 6.43 6.61 $ 3.29 $ 1.16 $ 2.48 $ 4.42 $ 7.18 $ 13.56 $ $ 0.71 $ 0.15 $ $ $ 1.88 $ 1.05 $ 2.39 $ 6.72 $ 10.70 $ 5.09 $ $ 0.32 $ 0.32 $ $ 6.03 $ 1.22 $ 1.77 $ 5.90 $ 12.26 $ 3.40 $ $ $ 0.94 $ $ $ $ $ $ $ $ $ $ $ 13.02 5.80 7.80 21.33 36.57 28.66 1.03 1.40 $ 5.11 $ 3.53 $ 3.64 $ 8.71 $ 13.61 $ 20.17 $ $ 0.71 $ 0.15 $ $ -
-55% 35% 173% 71% -22% -100% N/A 36% -100%
-31% 3% 139% 56% 48% -100% N/A -80% -100% N/A
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Q2 2012
QUARTERLY COMMERCIAL MORTGAGE COMMITMENTS BY LIFE INSURANCE COMPANIES Billions of Dollars
$18 $16 $14 $12 $10 $8 $6 $4 $2 $2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 Source: A S American C i Council of Lif I il f Life Insurance Companies (ACLI) C i a. Annual figures may not equal the sum of quarterly figures due to change in reporting.
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QUARTERLY DATABOOK
Q2 2012
QUARTERLY COMMERCIAL MORTGAGE COMMITMENTS BY LIFE INSURANCE COMPANIES Billions of Dollars
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ $ $ $ $ $ $ $ $ $ $ $
Q1 5.95 5.69 7.22 7.46 7.33 9.76 9.29 9.59 2.62 4.90 7.83 9.18 $ $ $ $ $ $ $ $ $ $ $ $
Q2 7.56 6.34 7.88 12.11 12.37 12.66 10.25 6.03 4.63 5.94 15.73 14.90 $ $ $ $ $ $ $ $ $ $ $
Q3 7.33 7.12 9.28 10.20 10.96 11.35 11.49 7.03 4.30 9.47 11.10 $ $ $ $ $ $ $ $ $ $ $
Q4 6.08 9.17 8.30 8.91 12.51 10.31 11.67 4.02 4.83 10.39 10.85 $ $ $ $ $ $ $ $ $ $ $
Annual (a) Percent Total change 26.92 28.32 32.68 38.67 43.17 44.08 42.69 26.67 16.39 30.71 45.52 $ $ $ $ $ $ $ $ $ $ $ $
YTD Q2 Percent Total change 13.50 12.04 15.10 19.56 19.70 22.42 19.54 15.62 7.26 10.85 23.56 24.07
5% 15% 18% 12% 2% -3% -38% -39% 87% 48%
-11% 25% 30% 1% 14% -13% -20% -54% 49% 117% 2%
Source: American Council of Life Insurance Companies (ACLI) a. Annual figures may not equal the sum of quarterly figures due to changes in reporting.
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Q2 2012
4. Commercial/Multifamily Mortgage Debt Outstanding

September 24, 2012
The level of commercial/multifamily mortgage debt outstanding decreased by $10.4 billion, or 0.4 percent, in the second quarter of 2012, as the balance of loans in CMBS, CDO and other ABS issues continued to decline, according to the Mortgage Bankers Association (MBA). The $2.37 trillion in outstanding commercial/multifamily mortgage debt was $10.4 billion lower than the first quarter 2012 figure. Multifamily mortgage debt outstanding rose to $826 billion, an increase
of $5.4 billion or 0.7 percent from the first quarter of 2012. CMBS loans paid-off, paid-down and were liquidated at a far faster pace than new CMBS loans were originated during the quarter, said Jamie Woodwell, MBAs Vice President of Commercial Real Estate Research. The drop in CMBS balances more than offset the increases in holdings by Fannie Mae, Freddie Mac and FHA, banks and life insurance companies.
Commercial Multifamily Mortgage Debt Outstanding By Investor Group, Second Quarter 2012
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QUARTERLY DATABOOK
Q2 2012
and thrifts with $225 billion, or 27 percent of the total. CMBS, CDO and other ABS issues hold $83 billion, or 10 percent of the total; state and local governments hold $71 billion, or 9 percent of the total; life insurance companies hold $51 billion, or 6 percent of the total; and the federal government holds $14 billion, or 2 percent of the total. CHANGES IN COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING In the second quarter of 2012, CMBS, CDO and other ABS issues saw the largest decrease in dollar terms in their holdings of commercial/multifamily mortgage debt a decrease of $19.8 billion, or 3.4 percent. Finance companies decreased their holdings of commercial/multifamily mortgages by $5.1 billion, or 8.4 percent. Agency and GSE portfolios and MBS saw the largest increase of $7.1 billion, or 2.0 percent. In percentage terms, the household sector saw the largest decrease in their holdings of commercial/multifamily mortgages, a decrease of 13.4 percent. The other insurance companies sector saw their holdings increase 4.1 percent. CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING The $5.4 billion increase in multifamily mortgage debt outstanding between the first and second quarter of 2012 represents a 0.7 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase in their holdings of multifamily mortgage debt, an increase of $7.1 billion, or 2 percent. Commercial banks increased their holdings of multifamily mortgage debt by $3.6 billion, or 1.6 percent. Life insurance companies increased by $576 million, or 1.2 percent. CMBS, CDO, and other ABS issues saw the biggest decline in their holdings of multifamily mortgage debt, by $4.8 billion or 5.4 percent. In percentage terms, private pension funds recorded the largest increase in holdings of multifamily mortgages, at 8.6 percent.
The analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDOs) and other asset backed securities (ABS) for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues). MBA recently improved its reporting of commercial and multifamily mortgage debt outstanding. The new reporting excludes two categories of loans that had formerly been included loans for acquisition, development and construction and loans collateralized by owner-occupied commercial properties. By excluding these loan types, the analysis here more accurately reflects the balance of loans supported by office buildings, retail centers, apartment buildings and other incomeproducing properties that rely on rents and leases to make their payments. Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $815 billion, or 34 percent of the total. CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $555 billion, or 23 percent of the total. Agency/GSE portfolios and MBS hold $360 billion, or 15 percent of the total, and life insurance companies hold $320 billion, or 14 percent of the total. Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the CMBS, CDO and other ABS category. MULTIFAMILY MORTGAGE DEBT OUTSTANDING Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, with $360 billion, or 44 percent of the total multifamily debt outstanding. They are followed by banks
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CMBS, CDO, and other ABS issues saw the biggest decrease, at 5.4 percent. MBAs analysis is based on data from the Federal Reserve Boards Flow of Funds Account of the United States and the Federal Deposit Insurance Corporations Quarterly Banking Profile. More information on the construction of this data series is contained in Appendix A in the report.
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QUARTERLY DATABOOK
Q2 2012
COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Commercial and Multifamily Mortgage Debt Outstanding, by Quarter ($millions)
3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2
MF
Commercial
Source: MBA, Federal Reserve Board of Governors, and FDIC
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Q2 2012
QUARTERLY COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING Commercial and Multifamily Mortgage Debt Outstanding, by Sector
Mortgage Debt Outstanding 2012 Q2 ($millions)

Bank and Thrift CMBS, CDO and other ABS issues Agency and GSE portfolios and MBS Life insurance companies State and local government 814,610 555,475 359,502 320,145 85,386
2012 Q1 ($millions)
807,797 575,288 352,417 316,504 86,629
% of total
34.4% 23.4% 15.2% 13.5% 3.6%
% of total
33.9% 24.2% 14.8% 13.3% 3.6%
Change ($millions)
6,813 -19,813 7,085 3,641 -1,243
Percent
0.8% -3.4% 2.0% 1.2% -1.4%
Sector Share of $ Change

-65.7% 191.1% -68.3% -35.1% 12.0%
Federal government Finance companies REITs Nonfarm noncorporate business Private pension funds Nonfinancial corporate business
Household sector State and local government retirement funds Other insurance companies TOTAL
81,910 55,517 32,016 22,332 12,805 10,323

9,562 5,923 5,385 2,370,891
3.5% 2.3% 1.4% 0.9% 0.5% 0.4%

0.4% 0.2% 0.2%
81,692 60,605 32,272 22,341 13,098 10,474

11,037 5,928 5,175 2,381,257
3.4% 2.5% 1.4% 0.9% 0.6% 0.4%

0.5% 0.2% 0.2%
218 -5,088 -256 -9 -293 -151

-1,475 -5 210 -10,366
0.3% -8.4% -0.8% 0.0% -2.2% -1.4%

-13.4% -0.1% 4.1% -0.4%
-2.1% 49.1% 2.5% 0.1% 2.8% 1.5%

14.2% 0.0% -2.0%
Source: MBA, Federal Reserve Board of Governors, and FDIC Note: Beginning with the Q4 2010 release, MBA's analysis of mortgage debt outstanding more accurately reflects the true level of mortgages backed by income-producing commercial and multifamily properties. Previous releases do not incorporate these improvements.
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Q2 2012
COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Commercial and Multifamily Mortgage Debt Outstanding, by Sector ($millions)
B ank and Thrift CM B S, CDO and o ther A B S issues A gency and GSE po rtfo lio s and M B S Life insurance co mpanies State and lo cal go vernment Federal go vernment Finance co mpanies REITs No nfarm no nco rpo rate business P rivate pensio n funds No nfinancial co rpo rate business Ho useho ld secto r State and lo cal go vernment retirement funds Other insurance co mpanies 0 85,386 81 0 ,91 55,51 7 32,01 6 22,332 1 2,805 1 0,323 9,562 5,923 5,385 1 00,000 200,000 300,000 400,000 201 2Q1 500,000 201 2Q2 600,000 700,000 359,502 320,1 45 555,475
81 0 4,61
800,000
900,000
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Q2 2012
COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Commercial and Multifamily Mortgage Debt Outstanding, by Selected Sector by Quarter ($millions) 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000
1995Q1 1996Q1 1997Q1 1998Q1 1999Q1 2000Q1 2001Q1 2002Q1 2003Q1 2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1
Agency and GSE portfolios and MBS CMBS, CDO and other ABS issues
Bank and Thrift Life insurance companies
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QUARTERLY DATABOOK
Q2 2012
COMMERCIAL AND MULTIFAMILY MORTGAGE FLOWS Net Change in Commercial and Multifamily Mortgage Debt Outstanding, by Quarter ($millions)
100,000 80,000 60,000 40,000 20,000 0 (20,000) (40,000)
2007Q2
2007Q3
2007Q4
2008Q1
2008Q2
2008Q3
2008Q4
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
MF
Commercial
TOTAL
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2012Q2
QUARTERLY DATABOOK
Q2 2012
COMMERCIAL AND MULTIFAMILY MORTGAGE FLOWS Net Change in Commercial and Multifamily Mortgage Debt Outstanding, by Sector ($millions)
A gency and GSE po rtfo lio s and M B S B ank and Thrift Life insurance co mpanies Federal go vernment Other insurance co mpanies State and lo cal go vernment retirement funds No nfarm no nco rpo rate business No nfinancial co rpo rate business REITs P rivate pensio n funds State and lo cal go vernment Ho useho ld secto r Finance co mpanies CM B S, CDO and o ther A B S issues (1 3) 9,81 (20,000) (1 5,000) (1 0,000) (5,000) 0 5,000 (5,088) (1 ) 51 (256) (293) (1 ,243) (1 ,475) 21 8 21 0 (5) (9) 3,641
7,085 6,81 4
(25,000)
1 0,000
1 5,000
20,000
2012Q1
2012Q2
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QUARTERLY DATABOOK
Q2 2012
MULTIFAMILY MORTGAGE DEBT OUTSTANDING
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Q2 2012
MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Multifamily Mortgage Debt Outstanding, by Quarter ($millions)
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2
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QUARTERLY DATABOOK
Multifamily Mortgage Debt Outstanding, by Sector
Q2 2012
QUARTERLY MULTIFAMILY MORTGAGE DEBT OUTSTANDING
Mortgage Debt Outstanding 2012 Q2 ($millions)

Agency and GSE portfolios and MBS Bank and Thrift CMBS, CDO and other ABS issues State and local government Life insurance companies 359,502 224,537 83,347 70,805 50,574
2012 Q1 ($millions)
352,417 220,943 88,115 71,841 49,998
% of total
43.5% 27.2% 10.1% 8.6% 6.1%
% of total
42.9% 26.9% 10.7% 8.8% 6.1%
Change ($millions)
7,085 3,594 -4,768 -1,036 576
Percent
2.0% 1.6% -5.4% -1.4% 1.2%
Sector Share of $ Change

130.9% 66.4% -88.1% -19.1% 10.6%
Federal government Nonfarm noncorporate business Finance companies Private pension funds State and local government retirement funds REITs
Nonfinancial corporate business TOTAL
13,925 12,354 3,318 3,107 2,777 1,742

397 826,385
1.7% 1.5% 0.4% 0.4% 0.3% 0.2%

0.0%
14,083 12,359 3,478 2,860 2,779 1,698

403 820,974
1.7% 1.5% 0.4% 0.3% 0.3% 0.2%

0.0%
-158 -5 -160 247 -2 44

-6 5,411
-1.1% 0.0% -4.6% 8.6% -0.1% 2.6%

-1.5% 0.7%
-2.9% -0.1% -3.0% 4.6% 0.0% 0.8%

-0.1%
Source: MBA, Federal Reserve Board of Governors, and FDIC Note: Beginning with the Q4 2010 release, MBA's analysis of mortgage debt outstanding more accurately reflects the true level of mortgages backed by income-producing commercial and multifamily properties. Previous releases do not incorporate these improvements.
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MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Multifamily Mortgage Debt Outstanding, by Sector ($millions)
A gency and GSE po rtfo lio s and M B S B ank and Thrift CM B S, CDO and o ther A B S issues State and lo cal go vernment Life insurance co mpanies Federal go vernment No nfarm no nco rpo rate business Finance co mpanies P rivate pensio n funds State and lo cal go vernment retirement funds REITs No nfinancial co rpo rate business 0 1 3,925 1 2,354 3,31 8 3,1 07 2,777 1 ,742 397 50,000 1 00,000 1 50,000 200,000 201 2Q1 250,000 300,000 83,347 70,805 50,574 224,537
359,502
350,000
400,000
201 2Q2
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MULTIFAMILY MORTGAGE DEBT OUTSTANDING Total Multifamily Mortgage Debt Outstanding, by Selected Sector by Quarter ($millions)
400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
1980Q1 1981Q1 1982Q1 1983Q1
1984Q1 1985Q1 1986Q1 1987Q1 1988Q1 1989Q1
1990Q1 1991Q1 1992Q1 1993Q1 1994Q1 1995Q1 1996Q1
1997Q1 1998Q1 1999Q1 2000Q1 2001Q1 2002Q1
2003Q1 2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1
Agency and GSE portfolios and MBS CMBS, CDO and other ABS issues State and local government
Bank and Thrift Life insurance companies
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2010Q1 2011Q1 2012Q1
RELEASES
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MULTIFAMILY MORTGAGE FLOWS
Q2 2012
Net Change in Multifamily Mortgage Debt Outstanding, by Quarter ($millions)
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 (5,000) (10,000)
2007Q2
2007Q3
2007Q4
2008Q1
2008Q2
2008Q3
2008Q4
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
Source: MBA. Federal Reserve Board of Governors, and FDIC
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2012Q2
QUARTERLY DATABOOK
MULTIFAMILY MORTGAGE FLOWS
Q2 2012
Net Change in Multifamily Mortgage Debt Outstanding, by Sector ($millions)
A gency and GSE po rtfo lio s and M B S B ank and Thrift Life insurance co mpanies P rivate pensio n funds REITs State and lo cal go vernment retirement funds No nfarm no nco rpo rate business No nfinancial co rpo rate business Federal go vernment Finance co mpanies State and lo cal go vernment CM B S, CDO and o ther A B S issues -4,768 (4,000) (2,000) 0 201 2Q1 2,000 201 2Q2 4,000 6,000 -1 ,036 -1 58 -1 60 576 247 44 -2 -5 -6 3,595
7,085
(6,000)
8,000
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APPENDIX A MBAs analysis is Federal Reserve Account of the Federal Deposit Quarterly Banking
Q2 2012
Estimated Components of Federal Reserves Flow of Funds Commercial and Multifamily Mortgages Held by Banks and Thrifts ($Billions)
Multifamily mortgages, $224.5
based on data from the Boards Flow of Funds United States and the Insurance Corporations Profile
MBAs analysis of commercial and multifamily mortgage debt outstanding was changed in the fourth quarter of 2010 to exclude two categories of loans that had previously been included; a. loans for acquisition, development and construction and b. loans collateralized by owneroccupied commercial properties. By excluding these loan types, MBAs analysis more accurately reflects the balance of loans supported by office buildings, retail centers, apartment buildings and other income-producing properties that rely on rents and leases to make their payments. For the second quarter 2012, the Federal Reserve Boards Flow of Funds Accounts data attributed $1.4 trillion of outstanding commercial and multifamily mortgages to banks and thrifts. Comparing this number to the FDICs Quarterly Banking Profile for the same period, one sees that banks and thrifts held $224.5 billion of multifamily mortgages and $1,058 billion of non-farm nonresidential mortgages, of which 56 percent or $590 billion were incomeproducing. The combined $815 billion of mortgages backed by multifamily and other income-producing properties is included in this analysis. The $1.4 trillion total reported by the Federal Reserve also includes $468 billion of loans collateralized by owneroccupied commercial properties and another $156 billion of loans backed by acquisition, development and construction projects (including those for single-family development), which are excluded in from this analysis.
Construction loans, $155.7
Incomeproducing commercial mortgages, $590.1
Owneroccupied commercial mortgages, $468.3
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Q2 2012
Commercial/Multifamily Mortgage Delinquencies

Commercial and Multifamily Mortgage Delinquency Rates Continue to Drop for Banks, Rise for CMBS in Second Quarter of 2012
August 30, 2012
Commercial and multifamily mortgage delinquency rates continued to drop for banks and rise for commercial mortgage backed securities (CMBS) during the second quarter of 2012. Delinquency rates also declined for Fannie Mae during the second quarter, and increased by 0.01 percentage points for life companies and 0.04 percentage points for Freddie Mac according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report. Commercial and multifamily delinquency rates for life companies, Fannie Mae and Freddie Mac all remain quite low, and the delinquency rate for bank-held loans continues to decline, said Jamie Woodwell, MBAs Vice President of Commercial Real Estate Research. The delinquency rate for loans in CMBS continues to show higher and more sustained aggregate delinquency rates, much of which is driven by the large share of these loans in foreclosure or REO. During the second quarter of 2012, the 60+ day delinquency rate for commercial and multifamily mortgages held in life company portfolios increased 0.01 percentage points to 0.15 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.08 percentage points to 0.29 percent. The 90+ day delinquency rate for loans held by FDICinsured banks and thrifts decreased 0.34 percentage points to 3.11 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac increased 0.04 percentage points to 0.27 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) increased 0.12 percentage points to 8.97 percent.
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The second quarter 2012 delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.38 percentage points lower than the series high (7.53 percent, reached during the second quarter of 1992). The delinquency rate for multifamily loans held by Freddie Mac was 6.54 percentage points lower than the series high (6.81 percent, reached in the fourth quarter of 1992). The delinquency rate for multifamily loans held by Fannie Mae was 3.33 percentage points below the series high (3.62 percent, reached during the fourth quarter of 1991). The rate for commercial and multifamily mortgages held by banks and thrifts was 3.47 percentage points lower than the series high (6.58 percent, reached in the second quarter of 1991). The rate for loans held in CMBS was 0.05 percentage points below the series high (9.02 percent, reached in the second quarter of 2011). Please note: In March 2012, MBA released a DataNote covering the performance of commercial and multifamily mortgages at commercial banks and thrifts over the entire year 2011. The DataNote found that commercial and multifamily mortgages had the lowest charge-off rates of any major loan type and had delinquency rates lower than the overall book of loans and leases held by banks and thrifts. The DataNote can be found at: www.mortgagebankers.org/research. Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of commercial real estate despite the fact that they are often backed by single-family residential development projects rather than by office buildings, apartment buildings,
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Q2 2012
shopping centers or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owneroccupied commercial properties. The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae and Freddie Mac. Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding. The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the second quarter were as follows: Life company portfolios: 0.15 percent (60 or more delinquent); Freddie Mac: 0.27 percent (60 or more days delinquent); Fannie Mae: 0.29 percent (60 or more days delinquent); Banks and thrifts: 3.11 percent (90 or more days delinquent or in nonaccrual); CMBS: 8.97 percent (30 or more days delinquent or in REO).
Differences between the delinquency measures are detailed in Appendix A.
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CHART 1. COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCY RATES AMONG MAJOR INVESTOR GROUPS Selected delinquency rates at the end of the period NOTE: Delinquency rates shown are NOT comparable between investor groups. These rates show how performance of loans for each investor groups has varied over time, but cannot be used to compare one investor group to another.
8.0% 7.0% 8.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 -- Q1 1991 -- Q1 1992 -- Q1 1993 -- Q1 1994 -- Q1 1995 -- Q1 1996 -- Q1 1997 -- Q1 1998 -- Q1 1999 -- Q1 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2012 -- Q1
Banks & Thrifts (90+ days)
10.0% 9.0%
7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
CMBS (30+ days and REO)
8.0% 7 0% 7.0% 6.0%

Life Companies (60+ days)
8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 -- Q1 1991 -- Q1 1992 -- Q1 1993 -- Q1 1994 -- Q1 1995 -- Q1 1996 -- Q1 1997 -- Q1 1998 -- Q1 1999 -- Q1 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2012 -- Q1 1990 -- Q1 1991 -- Q1 1992 -- Q1 1993 -- Q1 1994 -- Q1 1995 -- Q1 1996 -- Q1 1997 -- Q1 1998 -- Q1 1999 -- Q1 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2012 -- Q1
Fannie Mae* (60+ days) Freddie Mac^ (60+ days)
5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation
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1990 -- Q1 1991 -- Q1 1992 -- Q1 1993 -- Q1 1994 -- Q1 1995 -- Q1 1996 -- Q1 1997 -- Q1 1998 -- Q1 1999 -- Q1 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2012 -- Q1
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CHART 2. COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCY RATES AMONG MAJOR INVESTOR GROUPS, 2000 - PRESENT Selected delinquency rates at the end of the period NOTE: Delinquency rates shown are NOT comparable between investor groups. These rates show how performance of loans for each investor groups has varied over time, but cannot be used to compare one investor group to another.
5.0%
10.0% 9.0%
4.0%
Banks & Thrifts (90+ days)
8.0% 7.0%
CMBS (30+ days and REO)
3.0%
6.0% 5.0%
2.0%
4.0% 3.0%
1.0%
2.0% 1.0%
0.0% 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2012 -- Q1
0.0% 2000 -- Q1 2001 -- Q1 2002 -- Q1 2003 -- Q1 2004 -- Q1 2005 -- Q1 2006 -- Q1 2007 -- Q1 2008 -- Q1 2009 -- Q1 2010 -- Q1 2011 -- Q1 2011 -- Q1 2012 -- Q1 2012 -- Q1
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1.0%
1.0%
0.8%
Life Companies (60+ days)
0.8%
Fannie Mae* (60+ days) Freddie Mac^ (60+ days)
0.6%
0.6%
0.4%
0.4%
0.2%
0.2%
2000 -- Q1
2001 -- Q1
2002 -- Q1
2003 -- Q1
2004 -- Q1
2005 -- Q1
2006 -- Q1
2007 -- Q1
2008 -- Q1
2009 -- Q1
2000 -- Q1
2001 -- Q1
2002 -- Q1
2003 -- Q1
2004 -- Q1
2005 -- Q1
2006 -- Q1
2007 -- Q1
2008 -- Q1
2009 -- Q1
2010 -- Q1
2011 -- Q1
Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation
2012 -- Q1
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0.0%
0.0%
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COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCY RATES AMONG MAJOR INVESTOR GROUPS Selected delinquency rates at the end of the period NOTE: Delinquency rates shown are NOT comparable between investor groups. These rates show how performance of loans for each investor groups has varied over time, but cannot be used to compare one investor group to another. Life Companies Fannie Mae Freddie Mac
(60+ days) (60+ days) (60+days)
CMBS
(30+ days and REO)
Banks & Thrifts

(90+ days)
Year-end 1996 -- Q4 1997 -- Q4 1998 -- Q4 1999 -- Q4 2000 -- Q4 2001 -- Q4 2002 -- Q4 2003 -- Q4 2004 -- Q4 2005 -- Q4 2006 -- Q4 2007 -- Q4 2008 -- Q4 2009 -- Q4 2010 -- Q4 2011 -- Q4 Quarter-end 2009 -- Q1 2009 -- Q2 2009 -- Q3 2009 -- Q4 2010 -- Q1 2010 -- Q2 2010 -- Q3 2010 -- Q4 2011 -- Q1 2011 -- Q2 2011 -- Q3 2011 -- Q4 2012 -- Q1 2012 -- Q2
n.a. 0.39% 0.54% 0.51% 0.81% 1.26% 1.47% 1.72% 1.29% 0.84% 0.41% 0.39% 1.17% 5.70% 8.69% 8.56% 1.86% 3.90% 4.07% 5.70% 6.81% 8.22% 8.52% 8.69% 8.86% 9.02% 8.92% 8.56% 8.85% 8.97%
1.79% 0.90% 0.48% 0.25% 0.28% 0.12% 0.28% 0.12% 0.08% 0.05% 0.02% 0.01% 0.07% 0.19% 0.19% 0.17% 0.12% 0.15% 0.23% 0.19% 0.31% 0.29% 0.22% 0.19% 0.14% 0.12% 0.19% 0.17% 0.14% 0.15%
0.68% 0.37% 0.29% 0.12% 0.04% 0.33% 0.13% 0.13% 0.10% 0.27% 0.08% 0.08% 0.30% 0.63% 0.71% 0.59% 0.34% 0.51% 0.62% 0.63% 0.79% 0.80% 0.65% 0.71% 0.64% 0.46% 0.57% 0.59% 0.37% 0.29%
1.96% 0.96% 0.37% 0.14% 0.04% 0.15% 0.13% 0.05% 0.06% 0.00% 0.05% 0.02% 0.01% 0.20% 0.26% 0.22% 0.12% 0.15% 0.15% 0.20% 0.22% 0.22% 0.31% 0.26% 0.36% 0.31% 0.33% 0.22% 0.23% 0.27%
1.63% 1.19% 0.93% 0.71% 0.67% 0.90% 0.86% 0.78% 0.61% 0.54% 0.60% 0.85% 1.65% 3.94% 4.21% 3.58% 2.29% 2.95% 3.46% 3.94% 4.27% 4.34% 4.41% 4.21% 4.21% 3.97% 3.77% 3.58% 3.45% 3.11%
Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation. Note: Differences between the delinquency measures are detailed in Appendix A.
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APPENDIX A
SOURCES & MEASURES OF DELINQUENCIES
Q2 2012
into a forbearance agreement and abiding by the terms of the agreement, had been previously included in multifamily delinquency rates due to error. are but the an
Commercial Mortgage-backed Securities (CMBS) Source: Wells Fargo Securities, LLC and Intex Solutions, Inc. The delinquency rate for CMBS loans covers loans 30+ days delinquent, including those in foreclosure, and real estate owned (REO). The CMBS rate is the only one to include REO in either the numerator or the denominator. This series includes all private-label (non-Ginnie Mae, Fannie Mae or Freddie Mac issued) deals that are currently outstanding, including both fixedand floating-rate deals. In reports released prior to Q3 2011, this series included only deals issued prior to 2009. Beginning with the Q3 2011 release all deals are included regardless of issue date. Life Companies Source: American Council of Life Insurers The delinquency rate for life insurance company loans covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. Fannie Mae Source: Fannie Mae Monthly Volume Summary and Office of Federal Housing Enterprise Oversight Annual Reports to Congress The delinquency rate for multifamily loans either held in portfolio or securitized and guaranteed by the company covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. The company was unable to provide December delinquency figures for the years 2000 to 2004, so the fourth quarter numbers presented for those years are November, rather December, figures. In January 2011, Fannie Mae revised its 2010 monthly multifamily delinquency rates for all periods presented to exclude multifamily borrowers who have entered
Freddie Mac Source: Freddie Mac Monthly Volume Summary and Office of Federal Housing Enterprise Oversight Annual Reports to Congress The delinquency rate for multifamily loans either held in portfolio or securitized and guaranteed by the company covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. Freddie Mac notes that their delinquency rate [e]xcludes mortgage loans whose original contractual terms have been modified under an agreement with the borrower as long as the borrower complies with the modified contractual terms. As an example, after Hurricane Katrina, Freddie Mac modified a number of loans affected by the storms. In May 2010, Freddie Mac returned to reporting multifamily delinquencies as those loans 60+ days delinquent. FDIC-insured Banks & Thrifts Source: Federal Deposit Insurance Corporation The delinquency rate for FDIC banks and thrifts covers loans 90+ days delinquent, including those in foreclosure and in nonaccrual status, and does not include real estate owned (REO) in either the numerator or the denominator. The universe of loans covered by this series also includes a large number of owner-occupied commercial loans loans supported by the income of the resident business rather than by rent and lease payments. In a 2007 analysis by MBA of the ten banks with the largest commercial mortgage portfolios, approximately half, in dollar volume, of their commercial (non-multifamily) loan portfolio was comprised of these owneroccupied properties. Data are available for life companies, FDICinsured banks and thirfts, Fannie Mae and
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Freddie Mac since 1990 and CMBS since 1997.
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COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) OUTSTANDING
Billions of Dollars Q2 Year-Over-Year Change Percent Total change
Year
Q1
Q2
Q3
Q4
Q1-to-Q2 Change Percent Total change
U.S. CMBS OUTSTANDING 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 64.37 136.53 178.27 210.05 255.08 283.91 334.38 394.92 505.84 661.99 817.71 780.13 731.75 676.61 619.66 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 86.50 149.37 183.45 222.22 263.62 300.10 351.72 418.07 546.18 724.27 811.73 768.36 713.68 658.44 604.84 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 103.14 160.70 192.24 238.55 271.58 313.14 369.43 454.08 582.20 804.96 799.97 754.73 698.43 650.34 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 126.09 172.78 200.77 245.70 279.46 326.06 382.96 484.46 631.65 822.32 789.20 741.57 692.15 636.43
$ $ $ $ $ $ $ $ $ $ $ $ $ $
62.87 34.08 38.77 41.40 36.48 51.63 66.35 128.11 178.09 87.46 (43.37) (54.68) (55.24) (53.60)
73% 23% 21% 19% 14% 17% 19% 31% 33% 12% -5% -7% -8% -8%
$ $ $ $ $ $ $ $ $ $ $ $ $ $
12.84 5.18 12.16 8.54 16.18 17.34 23.14 40.34 62.28 (5.99) (11.77) (18.07) (18.17) (14.82)
9.4% 2.9% 5.8% 3.3% 5.7% 5.2% 5.9% 8.0% 9.4% -0.7% -1.5% -2.5% -2.7% -2.4%
Source: Wells Fargo Securities, LLC, and Intex Solutions, Inc. In reports released prior to Q3 2011, this series included only deals issued prior to 2009. Beginning with the Q3 2011 release all deals are included regardless of issue date.
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COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) OUTSTANDING
Billions of Dollars
$900
$800
$700
$600
$500
$400
$300
$200
$100
$1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Wells Fargo Securities, LLC, and Intex Solutions, Inc.
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COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) MARKET COMPOSITION Composition of CMBS Outstanding, as of June 30, 2012
Total CMBS Outstanding By Property Types: Office Multifamily Retail Industrial Hotel Self-Storage Healthcare Other
$ 604.8 billion
SelfStorage, 1.8% Hotel, 11.1% Industrial, 5.0%
Healthcare, 0.4% Other, 6.2% Office, 30.9%
30.9% 13.5% 31.1% 5.0% 11.1% 1.8% 0.4% 6.2%
By Amortization: Fully Amortizing All Interest-Only (IO) Full Term IO Part Term IO
Retail, 31.1%
Multifamily, 13.5%
36.9% 63.1% 32.9% 30.2%
Fully Amortizing, 36.9% Part Term IO, 30.2%
By Percent Defeased
4.3%
By Delinquency: Current 30-day delinquent 60-day delinquent 90+day delinquent Foreclosure/REO
91.03% 0.81% 0.46% 3.09% 4.61%
Full Term IO, 32.9%
Source: Wells Fargo Securities, LLC, and Intex Solutions, Inc.
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CMBS SPREADS COMMERCIAL MORTGAGE BACKED SECURITIES (CMBS) SPREADS TO SWAP RATES (in Basis Points)
16000 14000 12000 10000 8000 6000 4000 2000 0 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Jun-12 Jul-12 Aug-12
Super Senior AAA Junior AAA AA A BBB BBB-
Source: Commercial Real Estate Direct AAA CMBS SPREADS (in Basis Points)
1400 1200 1000 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Commercial Mortgage Alert

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CMBS SPREADS Commercial Mortgage Backed Securities (CMBS) Spreads to Swap Rates
Q2 2012
(in Basis Points) Super Senior AAA 31-Dec-04 30-Dec-05 29-Dec-06 28-Dec-07 26-Dec-08 25-Dec-09 31-Dec-10 30-Dec-11 26-Aug-11 30-Sep-11 28-Oct-11 25-Nov-11 30-Dec-11 27-Jan-12 24-Feb-12 30-Mar-12 27-Apr-12 25-May-12 29-Jun-12 27-Jul-12 24-Aug-12 Change in Spread Aug-11 to Aug-12 25 28 23 85 893 563 243 273 335 320 263 300 273 225 210 190 195 235 210 195 205 Junior AAA 28 38 30 184 2963 2030 775 1600 1325 1550 1600 1670 1600 1300 1225 950 1150 1450 1025 1325 1263
AA 33 48 38 260 4013 3545 2710 3178 2620 2763 3125 3098 3178 3030 3450 3450 3450 3018 3450 3450 3450
A 41 59 47 390 4775 4845 3450 3513 3523 3538 3615 3908 3513 3370 3800 3800 3800 3520 3800 3800 3800
BBB 80 120 75 763 7170 6500 9685 4440 5095 3928 4323 4353 4440 4453 5100 5100 5100 4648 5100 5100 5100
BBB120 183 92 938 7915 7000 10000 5668 5105 5155 5515 5573 5668 5698 6600 6600 6600 5835 6600 6600 6600
-130
-63
830
278
1495
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5. Commercial/Multifamily Mortgage Servicing Volumes

Year-End 2011
The Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers as of the end of June 30, 2012. At the top of the list of firms is Wells Fargo with $430.5 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $357.0 billion, Berkadia Commercial Mortgage LLC with $206.6 billion, Bank of America Merrill Lynch with $110.1 billion, and KeyBank Real Estate Capital with $100.1 billion. Wells Fargo, PNC/Midland, Berkadia, Bank of America Merrill Lynch and KeyBank are the largest master and primary servicers of commercial/multifamily loans in U.S. CMBS, CDO and other ABS; MetLife, PNC/Midland, GEMSA Loan Services, L.P., Prudential Asset Resources, and Northwestern Mutual are the largest servicers for life companies; PNC/Midland, Wells Fargo, Berkadia, Berkeley Point Capital, LLC, and GEMSA Loan Services are the largest Fannie Mae/Freddie Mac servicers. PNC/Midland ranks as the top master and primary servicer of commercial bank and savings institution loans; GEMSA the top credit company, pension funds, REITs, and investment funds servicer; PNC/Midland the top FHA and Ginnie Mae servicer; Wells Fargo the top for loans held in warehouse facilities; and Berkadia the top for other investor type loans. A primary servicer is generally responsible for collecting loan payments from borrowers, performing property inspections and other property-related activities. A master servicer is typically responsible for collecting cash and data from primary servicers and then providing that cash and data, through trustees, to investors. Unless otherwise noted, MBA tabulations that
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combine different roles do not double-count loans for which a single servicer performs multiple roles. Specific breakouts include: Total U.S. Master and Primary Servicing Volume U.S. Commercial Mortgage-backed Securities (CMBS), Collateralized Debt Obligations (CDOs) and Other Asset-Backed Securities (ABS) Master and Primary Servicing Volume U.S. Commercial Banks and Savings Institution Volume U.S. Credit Company, Pension Funds, REITs, and Investment Funds Volume Fannie Mae and Freddie Mac Servicing Volume Federal Housing Administration (FHA) Servicing Volume U.S. Life Company Servicing Volume U.S. Warehouse Volume U.S. Other Investor Volume U.S. CMBS Named Special Servicing Volume U.S. Named Special Servicing Volumes Across All Investor Groups Total Non-U.S. Master and Primary Servicing Volume MBA also asked firms to provide information about loans on which they are the named special servicer that is, where the firm stands ready to service the loan should special problems develop, such as delinquency. The largest named special servicers were LNR Partners, Inc., CWCapital LLC & CWCapital Asset Management, and C-III Asset Management LLC. The MBA survey also collected servicing volumes for loans on
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commercial/multifamily properties located outside the United States. Hatfield Philips International, an LNR Property Company ranks as the largest master and primary servicer of non-U.S. commercial/multifamily mortgages, followed by GEMSA, PNC/Midland, Manulife Financial/John Hancock, and Situs.
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Total US Collateral Total Primary & Master Servicing TOTAL LOANS
Q2 2012
Mid-Year Survey of Commercial/Multifamily Mortgage Servicing Volumes as of June 30, 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
Company Wells Fargo PNC Real Estate / Midland Loan Services Berkadia Commercial Mortgage LLC Bank of America Merrill Lynch KeyBank Real Estate Capital GEMSA Loan Services, L.P. Prudential Asset Resources NorthMarq Capital LLC MetLife HFF L.P. Berkeley Point Capital, LLC TriMont Real Estate Advisors Grandbridge Real Estate Capital LLC Principal Global Investors Northwestern Mutual New York Life Investments Walker & Dunlop, LLC CWCapital LLC & CWCapital Asset Management C-III Asset Management, LLC Red Mortgage Capital, LLC Q10 Capital LLC Manulife Financial / John Hancock Greystone Servicing Corporation, Inc. M&T Realty Capital Corporation HSBC Bank USA, N.A. AEGON USA Realty Advisors LLC Pacific Life Insurance Company ING Investment Management, LLC Nationwide Life Insurance Company Centerline Capital Group Situs Oak Grove Capital StanCorp Mortgage Investors, LLC Thrivent Financial for Lutherans Lincoln National Corporation Newmark Realty Capital, Inc. - SAM Member Genworth Financial Cohen Financial NCB, FSB Beech Street Capital, LLC Bellwether Enterprise Real Estate Capital LLC Essex Financial Services LLC Aviva Investors North America Inc Pacific Southwest Realty Services - SAM Member
Amount ($ millions) $430,548 $357,034 $206,590 $110,062 $100,069 $94,651 $68,502 $40,262 $36,267 $28,854 $28,619 $28,307 $26,071 $23,949 $23,190 $19,313 $17,563 $17,249 $15,694 $15,139 $14,788 $14,429 $10,737 $10,068 $10,020 $9,609 $9,234 $9,025 $9,003 $8,506 $8,300 $7,999 $7,894 $7,515 $6,836 $6,555 $6,299 $6,000 $5,844 $5,023 $4,944 $4,871 $4,466 $4,124
Number of loans 36,704 97,051 26,967 9,494 11,141 9,581 5,475 5,547 740 2,161 2,085 1,626 4,934 2,741 653 620 1,932 3,336 2,065 1,679 4,670 1,369 2,730 1,063 1,087 1,352 513 1,272 1,287 1,481 763 1,256 6,282 2,206 1,240 876 1,763 1,987 4,293 481 1,225 992 984 803
Avg. Loan Size ($m) $11.7 $3.7 $7.7 $11.6 $9.0 $9.9 $12.5 $7.3 $49.0 $13.4 $13.7 $17.4 $5.3 $8.7 $35.5 $31.1 $9.1 $5.2 $7.6 $9.0 $3.2 $10.5 $3.9 $9.5 $9.2 $7.1 $18.0 $7.1 $7.0 $5.7 $10.9 $6.4 $1.3 $3.4 $5.5 $7.5 $3.6 $3.0 $1.4 $10.4 $4.0 $4.9 $4.5 $5.1
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Rank 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
Company AmeriSphere Multifamily Finance, LLC Alliant Capital, LLC BNY Mellon Columbia National Real Estate Finance, LLC Heartland Bank Jones Lang LaSalle Operations, LLC Guardian Life Insurance Company of America P/R Mortgage & Investment Corp. RiverSource Life Insurance Company Lancaster Pollard Mortgage Company Barry S. Slatt Mortgage Company Capital Funding, LLC Ocwen Loan Servicing, LLC - Commercial Special Servicing Sunrise Mortgage & Investment Co. 40|86 Mortgage Capital,Inc. Norris, Beggs & Simpson Financial Services - SAM Member Bernard Financial Serivicng Group - SAM Member OneAmerica Financial Partners Medalist Capital, Inc. Dougherty Mortgage LLC Gershman Mortgage Colliers International - Boston - SAM Member HomeStreet Capital Goedecke & Co., LLC MEMBERS Capital Advisors Westcap Corp. Capital Advisors, Inc. George Elkins Mortgage Banking Company Johnson Capital Group Waterstone Asset Management Morris, Smith and Feyh, Incorporated Thomas D. Wood & Company - SAM Member Glacier Real Estate Finance, Inc. Protective Life Corp RockBridge Capital LLC Keystone Mortgage Corporation Greater Nevada Mortgage Services Venture Mortgage Corporation - SAM Member St. James Capital, L.L.C. Pace Financial Group CBRE HMF Dickinson, Logan, Todd & Barber, Inc. - SAM Member Bethpage Federal Credit Union Great-West Life & Annuity Insurance Company
Amount ($ millions) $3,866 $3,749 $3,728 $3,603 $3,372 $3,005 $2,959 $2,511 $2,470 $2,440 $2,353 $2,162 $2,142 $1,749 $1,746 $1,649 $1,648 $1,620 $1,454 $1,393 $1,281 $1,227 $1,159 $1,059 $1,056 $1,055 $1,054 $1,018 $1,010 $1,004 $950 $932 $891 $809 $778 $650 $629 $593 $568 $568 $519 $437 $382 $373
Number of loans 393 972 490 363 671 189 347 543 823 505 991 363 4,570 932 369 363 288 547 320 187 173 109 308 143 275 214 305 449 154 722 169 474 266 263 74 215 4,610 240 126 60 43 123 188 50
Avg. Loan Size ($m) $9.8 $3.9 $7.6 $9.9 $5.0 $15.9 $8.5 $4.6 $3.0 $4.8 $2.4 $6.0 $0.5 $1.9 $4.7 $4.5 $5.7 $3.0 $4.5 $7.4 $7.4 $11.3 $3.8 $7.4 $3.8 $4.9 $3.5 $2.3 $6.6 $1.4 $5.6 $2.0 $3.3 $3.1 $10.5 $3.0 $0.1 $2.5 $4.5 $9.5 $12.1 $3.6 $2.0 $7.5
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Rank 89 90 91 92 93 94 95 96 97 98 99 100 101 102
Company Terrix Financial Corporation Rockhall Funding Corp. Summit Investment Partners Western Capital Realty Advisors - SAM Member Innovative Capital Advisors, LLC Eustis Commercial Mortgage Corporation - SAM Member Ziegler Financing Corporation First Housing Development Corporation of Florida Directed Capital Boston Mutual Life Insurance Company RoundPoint Mortgage Servicing Corporation One Nevada Credit Union Allstate Investments, LLC Royal Neighbors of America
Amount ($ millions) $364 $360 $297 $270 $253 $244 $233 $207 $161 $125 $100 $82 $19 $3
Number of loans 261 22 271 48 208 72 28 55 117 138 525 81 6 2
Avg. Loan Size ($m) $1.4 $16.4 $1.1 $5.6 $1.2 $3.4 $8.3 $3.8 $1.4 $0.9 $0.2 $1.0 $3.1 $1.4
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Total US Collateral Total Primary & Master Servicing CMBS, CDO or other ABS Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
Company Wells Fargo PNC Real Estate / Midland Loan Services Berkadia Commercial Mortgage LLC Bank of America Merrill Lynch KeyBank Real Estate Capital GEMSA Loan Services, L.P. Principal Global Investors HFF L.P. Prudential Asset Resources NorthMarq Capital LLC Grandbridge Real Estate Capital LLC Situs BNY Mellon CWCapital LLC & CWCapital Asset Management NCB, FSB Ocwen Loan Servicing, LLC - Commercial Special Servicing C-III Asset Management, LLC Berkeley Point Capital, LLC Nationwide Life Insurance Company Pacific Life Insurance Company Bernard Financial Serivicng Group - SAM Member Newmark Realty Capital, Inc. - SAM Member Q10 Capital LLC Waterstone Asset Management Jones Lang LaSalle Operations, LLC TriMont Real Estate Advisors Pacific Southwest Realty Services - SAM Member Cohen Financial Protective Life Corp Columbia National Real Estate Finance, LLC Beech Street Capital, LLC Manulife Financial / John Hancock Summit Investment Partners Walker & Dunlop, LLC Pace Financial Group M&T Realty Capital Corporation Goedecke & Co., LLC George Elkins Mortgage Banking Company HSBC Bank USA, N.A. Bellwether Enterprise Real Estate Capital LLC Venture Mortgage Corporation - SAM Member Western Capital Realty Advisors - SAM Member Johnson Capital Group Glacier Real Estate Finance, Inc.
Amount ($ millions) $350,304 $118,028 $92,827 $77,612 $71,116 $15,653 $10,825 $10,435 $10,399 $8,080 $5,429 $3,799 $3,728 $3,201 $2,252 $2,130 $2,061 $2,011 $1,931 $1,359 $1,064 $1,062 $1,027 $1,004 $935 $848 $847 $829 $809 $803 $552 $529 $297 $280 $246 $186 $183 $140 $129 $125 $89 $75 $66 $58
Number of loans 25,696 10,835 11,329 4,446 7,754 3,051 1,278 663 945 838 771 242 490 326 1,020 4,524 133 85 217 282 95 72 115 722 42 3 111 499 263 81 23 62 271 26 32 11 17 8 8 13 19 13 17 12
Avg. Loan Size ($m) $13.6 $10.9 $8.2 $17.5 $9.2 $5.1 $8.5 $15.7 $11.0 $9.6 $7.0 $15.7 $7.6 $9.8 $2.2 $0.5 $15.5 $23.7 $8.9 $4.8 $11.2 $14.8 $8.9 $1.4 $22.3 $282.8 $7.6 $1.7 $3.1 $9.9 $24.0 $8.5 $1.1 $10.8 $7.7 $16.9 $10.8 $17.5 $16.1 $9.6 $4.7 $5.8 $3.9 $4.8
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Total US Collateral Total Primary & Master Servicing CMBS, CDO or other ABS Loans
Q2 2012
Rank 45 46 47 48
Company Morris, Smith and Feyh, Incorporated Norris, Beggs & Simpson Financial Services - SAM Member Eustis Commercial Mortgage Corporation - SAM Member Colliers International - Boston - SAM Member
Amount ($ millions) $44 $22 $14 $7
Number of loans 9 3 2 2
Avg. Loan Size ($m) $4.9 $7.3 $7.0 $3.5
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Total US Collateral
Q2 2012
Mid-Year Survey of Commercial/Multifamily Mortgage Servicing Volumes as of June 30, 2012 Total Primary & Master Servicing Commercial Bank/Savings Institution Loans
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Company PNC Real Estate / Midland Loan Services TriMont Real Estate Advisors KeyBank Real Estate Capital HSBC Bank USA, N.A. Bank of America Merrill Lynch Berkadia Commercial Mortgage LLC Wells Fargo NCB, FSB Principal Global Investors HFF L.P. Grandbridge Real Estate Capital LLC HomeStreet Capital P/R Mortgage & Investment Corp. RockBridge Capital LLC Berkeley Point Capital, LLC Heartland Bank Barry S. Slatt Mortgage Company RoundPoint Mortgage Servicing Corporation Ocwen Loan Servicing, LLC - Commercial Special Servicing Jones Lang LaSalle Operations, LLC Centerline Capital Group Keystone Mortgage Corporation George Elkins Mortgage Banking Company Pacific Southwest Realty Services - SAM Member
Amount ($ millions) $73,830 $19,048 $17,331 $6,787 $2,512 $2,081 $1,424 $639 $539 $536 $415 $329 $135 $126 $57 $34 $24 $23 $12 $9 $7 $4 $1 $0
Number of loans 71,877 777 2,484 765 2,786 165 1,526 2,022 92 16 54 66 61 7 8 8 6 221 46 1 14 5 1 1
Avg. Loan Size ($m) $1.0 $24.5 $7.0 $8.9 $0.9 $12.6 $0.9 $0.3 $5.9 $33.5 $7.7 $5.0 $2.2 $18.0 $7.1 $4.2 $4.0 $0.1 $0.3 $9.0 $0.5 $0.8 $1.0 $0.1
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Total US Collateral
Q2 2012
Mid-Year Survey of Commercial/Multifamily Mortgage Servicing Volumes as of June 30, 2012 Total Primary & Master Servicing Credit Company, Pension Funds, REITs, Investment Funds Loans
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Company GEMSA Loan Services, L.P. Bank of America Merrill Lynch PNC Real Estate / Midland Loan Services TriMont Real Estate Advisors C-III Asset Management, LLC Prudential Asset Resources Situs Cohen Financial NorthMarq Capital LLC Wells Fargo Principal Global Investors Bellwether Enterprise Real Estate Capital LLC CWCapital LLC & CWCapital Asset Management New York Life Investments HFF L.P. Q10 Capital LLC Directed Capital Keystone Mortgage Corporation Greater Nevada Mortgage Services Barry S. Slatt Mortgage Company George Elkins Mortgage Banking Company
Amount ($ millions) $29,633 $21,718 $17,929 $7,259 $5,250 $3,779 $3,388 $2,513 $1,302 $917 $604 $475 $354 $351 $261 $254 $161 $98 $24 $8 $1
Number of loans 3,359 272 4,299 824 488 573 338 1,030 135 23 33 99 171 8 52 59 117 10 174 2 1
Avg. Loan Size ($m) $8.8 $79.8 $4.2 $8.8 $10.8 $6.6 $10.0 $2.4 $9.6 $39.5 $18.3 $4.8 $2.1 $43.9 $5.0 $4.3 $1.4 $9.8 $0.1 $3.8 $1.0
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Total US Collateral Total Primary & Master Servicing Fannie Mae & Freddie Mac Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Company PNC Real Estate / Midland Loan Services Wells Fargo Berkadia Commercial Mortgage LLC Berkeley Point Capital, LLC GEMSA Loan Services, L.P. Walker & Dunlop, LLC Prudential Asset Resources NorthMarq Capital LLC CWCapital LLC & CWCapital Asset Management Red Mortgage Capital, LLC M&T Realty Capital Corporation Grandbridge Real Estate Capital LLC C-III Asset Management, LLC Centerline Capital Group Greystone Servicing Corporation, Inc. Oak Grove Capital KeyBank Real Estate Capital Beech Street Capital, LLC Alliant Capital, LLC AmeriSphere Multifamily Finance, LLC HFF L.P. HSBC Bank USA, N.A. NCB, FSB Jones Lang LaSalle Operations, LLC Bellwether Enterprise Real Estate Capital LLC HomeStreet Capital Bank of America Merrill Lynch Columbia National Real Estate Finance, LLC Greater Nevada Mortgage Services Dougherty Mortgage LLC Q10 Capital LLC Cohen Financial George Elkins Mortgage Banking Company Bernard Financial Serivicng Group - SAM Member Principal Global Investors Lancaster Pollard Mortgage Company Eustis Commercial Mortgage Corporation - SAM Member P/R Mortgage & Investment Corp. Lincoln National Corporation RoundPoint Mortgage Servicing Corporation Manulife Financial / John Hancock
Amount ($ millions) $57,311 $44,156 $25,431 $25,179 $16,444 $14,013 $13,872 $11,366 $10,967 $10,916 $8,720 $8,298 $8,263 $8,263 $7,390 $6,523 $6,133 $4,401 $3,749 $3,428 $3,333 $3,104 $2,895 $1,880 $1,023 $773 $681 $670 $497 $391 $194 $172 $64 $57 $47 $46 $29 $13 $7 $4 $1
Number of loans 5,804 6,953 2,466 1,853 1,089 1,521 978 1,412 2,473 978 933 905 1,418 1,418 2,372 1,042 522 449 972 353 195 314 1,227 142 280 224 277 53 3,386 83 23 29 3 5 40 10 8 8 5 34 1
Avg. Loan Size ($m) $9.9 $6.4 $10.3 $13.6 $15.1 $9.2 $14.2 $8.0 $4.4 $11.2 $9.3 $9.2 $5.8 $5.8 $3.1 $6.3 $11.7 $9.8 $3.9 $9.7 $17.1 $9.9 $2.4 $13.2 $3.7 $3.5 $2.5 $12.6 $0.1 $4.7 $8.4 $5.9 $21.3 $11.4 $1.2 $4.6 $3.6 $1.6 $1.3 $0.1 $1.0
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Total US Collateral Total Primary & Master Servicing FHA & Ginnie Mae Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Company PNC Real Estate / Midland Loan Services Prudential Asset Resources Berkadia Commercial Mortgage LLC Wells Fargo Red Mortgage Capital, LLC Heartland Bank CWCapital LLC & CWCapital Asset Management Greystone Servicing Corporation, Inc. Lancaster Pollard Mortgage Company P/R Mortgage & Investment Corp. Capital Funding, LLC KeyBank Real Estate Capital Walker & Dunlop, LLC Oak Grove Capital Berkeley Point Capital, LLC Gershman Mortgage Dougherty Mortgage LLC M&T Realty Capital Corporation Grandbridge Real Estate Capital LLC Bellwether Enterprise Real Estate Capital LLC St. James Capital, L.L.C. CBRE HMF AmeriSphere Multifamily Finance, LLC NorthMarq Capital LLC Rockhall Funding Corp. Johnson Capital Group Ziegler Financing Corporation Columbia National Real Estate Finance, LLC First Housing Development Corporation of Florida Centerline Capital Group Beech Street Capital, LLC Bank of America Merrill Lynch NCB, FSB Q10 Capital LLC
Amount ($ millions) $10,883 $8,867 $8,041 $6,934 $4,100 $3,338 $2,723 $2,402 $2,288 $2,286 $2,067 $1,646 $1,578 $1,423 $1,372 $1,281 $1,002 $942 $601 $597 $568 $519 $437 $437 $360 $332 $233 $213 $195 $112 $70 $9 $6 $4
Number of loans 1,856 757 2,319 1,155 683 663 365 234 428 430 340 180 183 207 139 173 104 87 121 133 126 43 40 40 22 45 28 15 46 21 9 4 2 2
Avg. Loan Size ($m) $5.9 $11.7 $3.5 $6.0 $6.0 $5.0 $7.5 $10.3 $5.3 $5.3 $6.1 $9.1 $8.6 $6.9 $9.9 $7.4 $9.6 $10.8 $5.0 $4.5 $4.5 $12.1 $10.9 $10.9 $16.4 $7.4 $8.3 $14.2 $4.2 $5.3 $7.8 $2.3 $3.0 $2.0
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Total US Collateral Total Primary & Master Servicing Life Insurance Companies Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
Company MetLife PNC Real Estate / Midland Loan Services GEMSA Loan Services, L.P. Prudential Asset Resources Northwestern Mutual NorthMarq Capital LLC New York Life Investments HFF L.P. Manulife Financial / John Hancock Q10 Capital LLC Principal Global Investors Grandbridge Real Estate Capital LLC AEGON USA Realty Advisors LLC ING Investment Management, LLC StanCorp Mortgage Investors, LLC Pacific Life Insurance Company Thrivent Financial for Lutherans Nationwide Life Insurance Company Lincoln National Corporation Genworth Financial Bank of America Merrill Lynch Newmark Realty Capital, Inc. - SAM Member Essex Financial Services LLC Berkadia Commercial Mortgage LLC Aviva Investors North America Inc Pacific Southwest Realty Services - SAM Member Guardian Life Insurance Company of America Bellwether Enterprise Real Estate Capital LLC Cohen Financial RiverSource Life Insurance Company Barry S. Slatt Mortgage Company Sunrise Mortgage & Investment Co. 40|86 Mortgage Capital,Inc. Walker & Dunlop, LLC Norris, Beggs & Simpson Financial Services - SAM Member OneAmerica Financial Partners Medalist Capital, Inc. Columbia National Real Estate Finance, LLC Colliers International - Boston - SAM Member TriMont Real Estate Advisors Situs Westcap Corp. Capital Advisors, Inc. MEMBERS Capital Advisors
Amount ($ millions) $36,267 $34,636 $32,790 $31,194 $23,190 $19,077 $18,900 $14,289 $13,899 $13,021 $11,882 $10,330 $9,552 $9,025 $7,894 $7,738 $7,515 $7,071 $6,829 $6,299 $6,200 $5,493 $4,871 $4,623 $4,466 $3,277 $2,959 $2,725 $2,486 $2,470 $2,289 $1,749 $1,746 $1,658 $1,627 $1,620 $1,454 $1,417 $1,220 $1,151 $1,113 $1,055 $1,054 $1,026
Number of loans 740 1,114 2,069 2,172 653 3,122 610 1,235 1,306 4,311 1,293 2,801 1,341 1,272 6,282 155 2,206 1,070 1,235 1,763 1,671 804 992 1,130 984 691 347 700 429 823 966 932 369 188 360 547 320 137 107 22 183 214 305 246
Avg. Loan Size ($m) $49.0 $31.1 $15.8 $14.4 $35.5 $6.1 $31.0 $11.6 $10.6 $3.0 $9.2 $3.7 $7.1 $7.1 $1.3 $49.9 $3.4 $6.6 $5.5 $3.6 $3.7 $6.8 $4.9 $4.1 $4.5 $4.7 $8.5 $3.9 $5.8 $3.0 $2.4 $1.9 $4.7 $8.8 $4.5 $3.0 $4.5 $10.3 $11.4 $52.3 $6.1 $4.9 $3.5 $4.2
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Total US Collateral Total Primary & Master Servicing Life Insurance Companies Loans
Q2 2012
Rank 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69
Company Thomas D. Wood & Company - SAM Member Morris, Smith and Feyh, Incorporated Goedecke & Co., LLC Glacier Real Estate Finance, Inc. George Elkins Mortgage Banking Company RockBridge Capital LLC Johnson Capital Group Keystone Mortgage Corporation KeyBank Real Estate Capital Venture Mortgage Corporation - SAM Member Bernard Financial Serivicng Group - SAM Member Dickinson, Logan, Todd & Barber, Inc. - SAM Member Great-West Life & Annuity Insurance Company Terrix Financial Corporation Pace Financial Group Innovative Capital Advisors, LLC Eustis Commercial Mortgage Corporation - SAM Member Western Capital Realty Advisors - SAM Member Jones Lang LaSalle Operations, LLC Boston Mutual Life Insurance Company Wells Fargo HomeStreet Capital Allstate Investments, LLC Royal Neighbors of America NCB, FSB
Amount ($ millions) $928 $906 $876 $833 $812 $636 $612 $548 $535 $504 $481 $437 $373 $364 $322 $253 $201 $195 $181 $125 $50 $44 $19 $3 $1
Number of loans 473 160 126 254 436 60 92 200 118 221 181 123 50 261 28 208 62 35 4 138 5 14 6 2 1
Avg. Loan Size ($m) $2.0 $5.7 $7.0 $3.3 $1.9 $10.6 $6.7 $2.7 $4.5 $2.3 $2.7 $3.6 $7.5 $1.4 $11.5 $1.2 $3.2 $5.6 $45.3 $0.9 $9.6 $3.1 $3.1 $1.4 $1.0
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Total US Collateral
Q2 2012
Mid-Year Survey of Commercial/Multifamily Mortgage Servicing Volumes as of June 30, 2012 Total Primary & Master Servicing Loans Held in Warehouse (not elsewhere classified)
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Company Wells Fargo PNC Real Estate / Midland Loan Services KeyBank Real Estate Capital Bank of America Merrill Lynch Berkadia Commercial Mortgage LLC Prudential Asset Resources Q10 Capital LLC GEMSA Loan Services, L.P. Centerline Capital Group C-III Asset Management, LLC Greater Nevada Mortgage Services Pacific Life Insurance Company RoundPoint Mortgage Servicing Corporation P/R Mortgage & Investment Corp. Oak Grove Capital Principal Global Investors NCB, FSB Bernard Financial Serivicng Group - SAM Member Barry S. Slatt Mortgage Company RockBridge Capital LLC HomeStreet Capital CWCapital LLC & CWCapital Asset Management Thomas D. Wood & Company - SAM Member
Amount ($ millions) $25,470 $4,998 $3,307 $1,330 $546 $390 $228 $131 $125 $121 $108 $103 $73 $53 $53 $53 $51 $46 $32 $16 $13 $5 $4
Number of loans 1,326 356 83 38 26 50 38 13 28 26 1,050 60 270 10 7 5 21 7 17 7 4 1 1
Avg. Loan Size ($m) $19.2 $14.0 $39.8 $35.0 $21.0 $7.9 $6.0 $10.1 $4.5 $4.6 $0.1 $1.7 $0.3 $5.3 $7.5 $10.5 $2.4 $6.6 $1.9 $2.3 $3.3 $4.7 $4.0
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Total US Collateral Total Primary & Master Servicing Other Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Company Berkadia Commercial Mortgage LLC PNC Real Estate / Midland Loan Services Wells Fargo Grandbridge Real Estate Capital LLC Greystone Servicing Corporation, Inc. Columbia National Real Estate Finance, LLC Bethpage Federal Credit Union M&T Realty Capital Corporation Red Mortgage Capital, LLC Lancaster Pollard Mortgage Company Capital Funding, LLC One Nevada Credit Union New York Life Investments Q10 Capital LLC AEGON USA Realty Advisors LLC Pacific Life Insurance Company Walker & Dunlop, LLC MEMBERS Capital Advisors P/R Mortgage & Investment Corp. First Housing Development Corporation of Florida
Amount ($ millions) $73,040 $39,419 $1,293 $998 $945 $500 $382 $220 $123 $106 $95 $82 $62 $60 $57 $34 $34 $30 $24 $12
Number of loans 9,532 910 19 282 124 77 188 32 18 67 23 81 2 122 11 16 14 29 34 9
Avg. Loan Size ($m) $7.7 $43.3 $66.3 $3.5 $7.6 $6.5 $2.0 $6.9 $6.8 $1.6 $4.1 $1.0 $30.9 $0.5 $5.2 $2.1 $2.4 $1.0 $0.7 $1.3
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Total US Collateral Total Named Special Servicing CMBS, CDO or other ABS Loans
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Company LNR Partners, Inc (U.S.) CWCapital LLC & CWCapital Asset Management C-III Asset Management, LLC PNC Real Estate / Midland Loan Services Wells Fargo Situs Prudential Asset Resources KeyBank Real Estate Capital Bank of America Merrill Lynch Berkadia Commercial Mortgage LLC ORIX Capital Markets, LLC BNY Mellon Ocwen Loan Servicing, LLC - Commercial Special Servicing NCB, FSB Pacific Life Insurance Company Berkeley Point Capital, LLC TriMont Real Estate Advisors AEGON USA Realty Advisors LLC Protective Life Corp Principal Global Investors Waterstone Asset Management
Amount ($ millions) $166,609 $145,141 $136,987 $73,068 $33,756 $25,208 $18,413 $16,796 $14,837 $10,507 $8,665 $3,142 $2,379 $1,869 $1,802 $1,075 $941 $914 $809 $83 $16
Number of loans 12,591 11,177 13,229 5,146 1,115 1,914 13 2,477 64 3,445 1,228 315 4,540 866 273 46 14 3 263 31 7
Avg. Loan Size ($m) $13.2 $13.0 $10.4 $14.2 $30.3 $13.2 $1,430.6 $6.8 $231.8 $3.0 $7.1 $10.0 $0.5 $2.2 $6.6 $23.4 $67.2 $304.7 $3.1 $2.7 $2.3
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Total US Collateral Total Named Special Servicing TOTAL LOANS
Q2 2012
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Company LNR Partners, Inc (U.S.) CWCapital LLC & CWCapital Asset Management C-III Asset Management, LLC PNC Real Estate / Midland Loan Services Prudential Asset Resources MetLife Wells Fargo Situs New York Life Investments KeyBank Real Estate Capital Bank of America Merrill Lynch Principal Global Investors Berkadia Commercial Mortgage LLC Pacific Life Insurance Company ING Investment Management, LLC ORIX Capital Markets, LLC StanCorp Mortgage Investors, LLC Lincoln National Corporation NCB, FSB BNY Mellon RiverSource Life Insurance Company Ocwen Loan Servicing, LLC - Commercial Special Servicing TriMont Real Estate Advisors AEGON USA Realty Advisors LLC Summit Investment Partners HomeStreet Capital Berkeley Point Capital, LLC Protective Life Corp Guardian Life Insurance Company of America Bethpage Federal Credit Union Great-West Life & Annuity Insurance Company Directed Capital Boston Mutual Life Insurance Company RoundPoint Mortgage Servicing Corporation Barry S. Slatt Mortgage Company Allstate Investments, LLC Waterstone Asset Management
Amount ($ millions) $166,609 $148,658 $143,311 $92,995 $67,028 $36,267 $34,837 $28,681 $19,065 $16,796 $15,746 $13,334 $10,536 $9,540 $9,025 $8,755 $7,894 $6,836 $5,461 $3,142 $2,470 $2,391 $1,866 $1,189 $1,141 $1,115 $1,075 $809 $566 $382 $373 $161 $125 $97 $28 $19 $16
Number of loans 12,591 13,230 14,383 6,423 3,575 740 2,635 2,439 613 2,477 1,035 1,464 3,448 428 1,272 1,240 6,282 1,240 4,139 315 823 4,586 469 39 923 294 46 263 98 188 50 117 138 489 7 6 7
Avg. Loan Size ($m) $13.2 $11.2 $10.0 $14.5 $18.7 $49.0 $13.2 $11.8 $31.1 $6.8 $15.2 $9.1 $3.1 $22.3 $7.1 $7.1 $1.3 $5.5 $1.3 $10.0 $3.0 $0.5 $4.0 $30.5 $1.2 $3.8 $23.4 $3.1 $5.8 $2.0 $7.5 $1.4 $0.9 $0.2 $3.9 $3.1 $2.3
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Mid-Year Survey of Commercial/Multifamily Mortgage Servicing Volumes as of June 30, 2012 C/MF Loans Secured by Collateral OUTSIDE the US Total Primary & Master Servicing TOTAL LOANS
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Company Hatfield Phillips International, an LNR Property Company GEMSA Loan Services, L.P. PNC Real Estate / Midland Loan Services Manulife Financial / John Hancock Situs MetLife Berkadia Commercial Mortgage LLC Capital Services Group TriMont Real Estate Advisors LNR Partners Germany, an LNR Property Company Prudential Asset Resources Pacific Life Insurance Company Bank of America Merrill Lynch BNY Mellon
Amount ($ millions) $22,825 $8,917 $8,878 $7,994 $5,281 $5,164 $3,198 $2,652 $2,133 $740 $735 $353 $107 $36
Number of loans 135 454 1,173 1,606 214 109 136 3,515 160 257 21 15 3 14
Avg. Loan Size ($m) $169.1 $19.6 $7.6 $5.0 $24.7 $47.4 $23.5 $0.8 $13.3 $2.9 $35.0 $23.5 $35.7 $2.6
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6. Recent Commercial/Multifamily Research Releases from MBA

The following reports can be found at www.mortgagebankers.org/research. If you have trouble locating these or other MBA reports, email crefresearch@mortgagebankers.org
9/24/2012 Commercial/Multifamily Mortgage Debt Outstanding Declines Fueled by Drop in CMBS Loans The level of commercial/multifamily mortgage debt outstanding decreased by $10.4 billion, or 0.4 percent, in the second quarter of 2012, as the balance of loans in CMBS, CDO and other ABS issues continued to decline, according to the Mortgage Bankers Association (MBA).
8/30/2012 Commercial and Multifamily Mortgage Delinquency Rates Continue to Drop for Banks, Rise for CMBS in Second Quarter of 2012 Commercial and multifamily mortgage delinquency rates continued to drop for banks and rise for commercial mortgage backed securities (CMBS) during the second quarter of 2012. Delinquency rates also declined for Fannie Mae during the second quarter, and increased by 0.01 percentage points for life companies and 0.04 percentage points for Freddie Mac according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report.
8/23/2012 MBA Releases 2012 Mid-year Commercial/Multifamily Servicer Rankings The Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers as of June 30, 2012. At the top of the list of firms is Wells Fargo with $430.5 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $357.0 billion, Berkadia Commercial Mortgage LLC with $206.6 billion, Bank of America Merrill Lynch with $110.1 billion, and KeyBank Real Estate Capital with $100.1 billion.
7/31/2012 Second Quarter Commercial/Multifamily Mortgage Originations Up 25 Percent from Q2 2011 Commercial/multifamily mortgage origination volumes during the second quarter of 2012 were up 25 percent from second quarter 2011 levels, and up 39 percent from the first quarter of 2012, according to the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
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6/12/2012 Commercial/Multifamily Mortgage Balances Up $8.1 Billion in First Quarter The level of commercial/multifamily mortgage debt outstanding increased by $8.1 billion, or 0.3 percent, in the first quarter of 2012, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA).
6/5/2012 Commercial and Multifamily Mortgage Delinquency Rates Drop for Banks, Rise for CMBS in First Quarter of 2012 Commercial and multifamily mortgage delinquency rates dropped for banks and rose for commercial mortgage backed securities (CMBS) during the first quarter of 2012. Delinquency rates also declined for life insurance companies and Fannie Mae during the first quarter, and increased by 0.01 percentage points for Freddie Mac, according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report.
5/16/2012 Q1 2012 Commercial/Multifamily Mortgage Originations Up 36 Percent from Q1 2011 First quarter 2012 commercial and multifamily mortgage loan originations were 36 percent higher than during the same period last year and 12 percent lower than the fourth quarter of 2011, according to the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The decrease from fourth quarter 2011 reflects the industrys usual push to finalize deals before the end of the year, and subsequent drop-offs in first quarter numbers.
4/11/2012 Mortgage Bankers Commercial/Multifamily Originations up 55 Percent to $184.3 Billion in 2011 Commercial and multifamily mortgage origination volumes increased 55 percent in 2011, with mortgage bankers reporting $184.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Associations (MBA) 2011 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.
4/4/2012 Wells Fargo Top Commercial/Multifamily Mortgage Originator in 2011 Wells Fargo was the top commercial/multifamily mortgage originator in 2011, according to a set of listings released today by the Mortgage Bankers Association (MBA). Other originators in the top 10 include HFF, L.P.; Meridian Capital Group, LLC.; CBRE Capital Markets, Inc.; PNC Real Estate; MetLife Real Estate Investments; Deutsche Bank Commercial Real Estate; Prudential Mortgage Capital Company; Northmarq Capital LLC; and JP Morgan (CMBS).
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Q2 2012
3/14/2012 Commercial/Multifamily Mortgage Debt Outstanding Flat in 4th Quarter; Down 0.6 percent in 2011 The level of commercial/multifamily mortgage debt outstanding was essentially unchanged in the fourth quarter of 2011, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2011 was $14 billion lower than at the end of 2010, a decline of 0.6 percent.
3/7/2012 Commercial/Multifamily Mortgage Delinquencies Down; Best Performing Bank Loans During Recession Commercial and multifamily mortgage delinquency rates declined during the fourth quarter of 2011, and an analysis of data from the Federal Deposit Insurance Corporation (FDIC) shows that commercial and multifamily mortgages have fared better through the credit crunch and recession than any other major type of loan held by banks and thrifts, according to two reports released today by the Mortgage Bankers Association (MBA).
2/6/2012 MBA Forecasts $230 Billion of Commercial/Multifamily Mortgage Originations in 2012; $2.4 Trillion of Commercial/Multifamily Mortgage Debt Outstanding In its inaugural forecast of the commercial/multifamily real estate finance markets, the Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will hit $230 billion in 2012, an increase of 17 percent from 2011 volumes, and continue to rise to $290 billion in 2015. Commercial/multifamily mortgage debt outstanding is expected to also grow in 2012, ending the year above $2.4 trillion, two percent higher than at the end of 2011. By the end of 2015, mortgage debt outstanding is forecast to exceed $2.5 trillion. MBA previewed its forecast of the commercial/multifamily markets today at its Commercial Real Estate/Multifamily Housing Convention in Atlanta. 2/6/2012 MBA: Ten Percent of Non-Bank Commercial/Multifamily Debt Will Mature in 2012, Down From 2011 Ten percent, or $150.6 billion, of commercial and multifamily mortgages held by nonbank lenders and investors will mature in 2012, a 3 percent decline from the $154.7 billion that matured in 2011, and an 18 percent decline from 2010 according to todays release of the Mortgage Bankers Associations (MBA) 2011 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.
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QUARTERLY DATABOOK
Q2 2012
2/5/2012 Wells Fargo, PNC/Midland and Berkadia Lead National Rankings of Commercial/Multifamily Servicing Volumes The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of December 31, 2011. At the top of the list of firms is Wells Fargo with $437.7 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $355.1 billion, Berkadia Commercial Mortgage LLC with $176.5 billion, Bank of America Merrill Lynch with $115.0 billion, and KeyBank Real Estate Capital with $108.2 billion. 12/15/2011 Three of Four Major Investor Groups Increased Commercial/Multifamily Mortgage Investments During The Third Quarter The level of commercial/multifamily mortgage debt outstanding was essentially unchanged in the third quarter of 2011, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). 12/6/2011 Modest Changes in Commercial/Multifamily Mortgage Delinquency Rates During Third Quarter During the third quarter, delinquency rates declined for commercial and multifamily mortgages held by banks and in commercial mortgage backed securities (CMBS). Delinquency rates increased for loans held by life insurance companies and held or insured by Fannie Mae and Freddie Mac but are still at low levels, according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report.
11/3/2011 Third Quarter Commercial/Multifamily Mortgage Originations Up 98 Percent from Last Year, 10 Percent from Last Quarter Third quarter 2011 commercial and multifamily mortgage loan originations were 98 percent higher than during the same period last year and 10 percent higher than the second quarter of 2011, according to the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
10/19/2011 $68.8 Billion of Total Multifamily Lending in 2010; a 31 Percent Increase from 2009 In 2010, 2,548 different multifamily lenders provided a total of $68.8 billion in mortgage financing for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). The 2010 dollar volume represents a 31 percent increase from 2009 levels. Just one percent of the lenders accounted for 51 percent of the dollar volume, while three-quarters of the lenders made five or fewer loans over the course of the year.
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QUARTERLY DATABOOK
Q2 2012
9/22/2011 Commercial/Multifamily Mortgage Debt Outstanding Increased For First Time Since 2009 The level of commercial/multifamily mortgage debt outstanding increased by 0.1 percent in the second quarter of 2011, the first quarterly increase since the third quarter of 2009, according to the Mortgage Bankers Association (MBA).
9/12/2011 Commercial/Multifamily Mortgage Delinquencies Down in Second Quarter for Four of Five Major Investor Groups Commercial/multifamily mortgage delinquency rates among four out of five major investor groups decreased in the second quarter of 2011, according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report.
8/25/2011 MBA Releases 2011 Mid-year Commercial/Multifamily Servicer Rankings The Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers as of June 30, 2011. On top of the list of firms is Wells Fargo with $442.9 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $346.5 billion, Berkadia Commercial Mortgage with $184.2 billion, Bank of America Merrill Lynch with $123.7 billion and KeyBank Real Estate Capital with $107.7 billion.
8/4/2011 Second Quarter Commercial/Multifamily Mortgage Lending Up 107 Percent from Last Year; Up 52 Percent from First Quarter 2011 Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than the revised figures for the first quarter of 2011, according to the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
7/6/2011 Commercial/Multifamily Real Estate Markets Show the Turn of the Real Estate Cycle The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the first quarter of 2011. First quarter data on the commercial real estate markets show the natural effects of the turn of the real estate cycle. Broader economic indicators were positive in the first quarter, but provided less of a tail wind to commercial real estate markets than they might have. Despite this softness, real estate fundamentals have stabilized and are beginning to show signs of mending. Transaction volumes are picking up, and pricing and loan performance are showing initial signs inconsistent though they are of improvement. Any pick-up in economic growth will speed the healing; any slowdown will draw out the cycle.
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QUARTERLY DATABOOK
Q2 2012
6/16/2011 Commercial/Multifamily Mortgage Debt Outstanding Flat in Q1; Five of Seven Top Investor Groups Increase Holdings, Bank and Finance Company Holdings Decline The level of commercial/multifamily mortgage debt outstanding remained essentially unchanged at $2.4 trillion in the first quarter of 2011, decreasing by 0.1 percent from fourth quarter 2010, according to the Mortgage Bankers Association's (MBA) analysis of the Federal Reserve Board Flow of Funds data
6/8/2011 Commercial/Multifamily Mortgage Delinquency Rates Mixed in First Quarter Delinquency rates among different commercial/multifamily mortgage investor groups were mixed in the first quarter of 2011, according to the Mortgage Bankers Associations (MBA) Commercial/Multifamily Delinquency Report.
5/5/2011 Commercial/Multifamily Mortgage Bankers First Quarter 2011 Originations Increase 89 Percent Over First Quarter First quarter 2011 commercial and multifamily mortgage originations were 89 percent higher than during the same period last year and 25 percent lower than during the fourth quarter of 2010, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The decrease from fourth quarter 2010 reflects the industry's usual push to finalize deals before the end of the year, and subsequent drop-offs in first quarter numbers.
4/25/2011 Mortgage Bankers' Commercial/Multifamily Originations Up 44 Percent to $118.8 Billion in 2010 Commercial and multifamily mortgage origination volumes increased 44 percent in 2010 over the previous year, with mortgage bankers reporting $118.8 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association's 2010 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.
4/5/2011 MBA Releases 2010 Commercial/Multifamily Originations Rankings Wells Fargo Bank was the top commercial/multifamily mortgage originator in 2010, according to a set of listings released today by the Mortgage Bankers Association (MBA). Other originators in the top 10 include HFF, L.P.; Meridian Capital Group, LLC.; CBRE Capital Markets, Inc.; Prudential Mortgage Capital Company; MetLife Real Estate Investments; Deutsche Bank Commercial Real Estate; PNC Real Estate; Northmarq Capital, LLC; and Berkadia Commercial Mortgage LLC.
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QUARTERLY DATABOOK
Q2 2012
3/17/2011 Commercial/Multifamily Mortgage Debt Outstanding Fell by $67 billion, 2.7 Percent in 2010, Driven by CMBS Declines The level of commercial/multifamily mortgage debt outstanding decreased by 0.5 percent in the fourth quarter of 2010, to $2.4 trillion, according to the Mortgage Bankers Association (MBA) analysis of the Federal Reserve Board Flow of Funds data. On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2010 was $67 billion lower than at the end of 2009, a decline of 2.7 percent.
3/3/2011 MBA: Commercial and Multifamily Mortgage Delinquency Rates Remain Low for Life Companies, Fannie and Freddie; Fall for Banks/Thrifts; Rise Slightly for CMBS in Fourth Quarter During the fourth quarter of 2010, commercial and multifamily mortgage delinquency rates remained low for life insurance companies, Fannie Mae and Freddie Mac; fell for banks and thrifts for the first time since the 2006 and rose slightly for loans held in commercial mortgage backed securities (CMBS), according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.
2/7/2011 MBA: Only 11 Percent of $1.4 trillion of Non-Bank Commercial/Multifamily Mortgage Debt Set to Mature in 2011 Of the $1.4 trillion balance of outstanding commercial/multifamily mortgages held by non-bank investors, only 11 percent of the total ($155 billion) will mature in 2011 and 9 percent ($125 billion) in 2012 according to todays release of the Mortgage Bankers Associations (MBA) 2010 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey found that maturities vary considerably by the type of investor holding the loan. 2/7/2011 MBA: Strong Fourth Quarter Drives 2010 Commercial/Multifamily Mortgage Bankers Originations 36 Percent Above 2009 Levels Mortgage bankers originated $110 billion of commercial and multifamily mortgages during 2010 an increase of 36 percent from 2009, according to preliminary estimates based on the Mortgage Bankers Associations (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. 2/6/2011 Wells Fargo/Wachovia, PNC/Midland and Berkadia Lead National Rankings of Commercial/Multifamily Servicing Volumes The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of the end of December 31, 2010. On top of the list of firms is Wells Fargo with $451.1 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $337.4 billion, Berkadia Commercial Mortgage with $194.9 billion, Bank of America Merrill Lynch with $126.6 billion, and KeyBank Real Estate Capital with $118.9 billion.
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QUARTERLY DATABOOK
Q2 2012
2/4/2011 MBA's Woodwell Testifies on Commercial Real Estate Market Jamie Woodwell, Vice President of Commercial/Multifamily Research for the Mortgage Bankers Association (MBA), testified today before the Congressional Oversight Panel at a hearing titled, "Commercial Real Estate's Impact on Bank Stability."
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About the Commercial Real Estate / Multifamily Finance DataBook The Commercial Real Estate / Multifamily Finance DataBook is produced quarterly by the Research and Economics staff of the Mortgage Bankers Association and can be found at www.mortgagebankers. org/research. For more information, contact Jamie Woodwell, MBAs Vice President of Commercial / Multifamily Research, at (202) 557-2936 or jwoodwell@mortgagebankers.org. About the Mortgage Bankers Association The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nations residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBAs web site: www.mortgagebankers.org.

2 Q12 Quarterly Data Book

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MBA COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

QUARTERLY DATABOOK Q2 2012

MBA COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

QUARTERLY DATABOOK Q2 2012

Second Quarter 2012

Month-over-month Change in At-Place Employment Thousands of jobs

Treasury Yield Curve Percent

Source: Bureau of Labor Statistics

Source: Federal Reserve Board

Ten-year Treasury and 10-year Swaps Percent

Source: Federal Reserve Board

Source: Census Bureau

Commercial/Multifamily Mortgage Bankers Originations Index 2001 quarterly average = 100

Commercial/Multifamily Property Sales $Billions

Price Indices December 2000 = 100

Source: Real Capital Analytics

Monthly Retail Sales

Average Vacancy Rates By Property Type

Source: U.S. Census Bureau

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

For CRE, Growth, But Slow Growth

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

OUTLOOK ENVIRONMENT PRODUCTION OUTSTANDING SERVICING RELEASES

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Treasury Yield Curve

Ten Year Treasury and Ten Year Swaps

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Number of Employees on Nonfarm Payrolls Seasonally Adjusted, Thousands of Employees

Source: Bureau of Labor Statistics

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Source: Bureau of Labor Statistics

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Source: U.S. Census Bureau

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Health and Personal Care Stores

Source:U.S.CensusBureau Source: U S Census Bureau

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Clothing & Accessories

Source: U.S. Census Bureau

September 2012 Mortgage Bankers Association. All rights reserved.

COMMERCIAL REAL ESTATE / MULTIFAMILY FINANCE

Change in Renter-occupied Units

Change in Owner-occupied Units

Quarter over quarter Quarter-over-quarter Change

(1,000) 1990 1995 2000 2005 2010