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A publication of
Summer issue 2015 sponsored by
CRE Finance World Summer 2015
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The top states in which participants originated new loans were
California, Texas, Illinois, and New York. Ninety percent of new
originations were fixed-rate loans and the remaining 10% were
floating rate loans. Among the various real estate product types,
multifamily and office properties led originations, at 30% and 32%
of the dollar volume total, respectively. Retail and industrial each
represented about 15% of total dollar volume.
Exhibit 9
Loan Type
Exhibit 10
Property Type
The credit quality of insurance companies’ mortgages, as measured
by the new mortgage designations Commercial Mortgage (CM)
Test Scores, appears to be good. Not all of the 21 survey respondents
provided this information. Data was available for about half of the
new originations, approximately $7 billion. The majority of insurers
that reported this data had strict lending requirements and maintained
very high allocations to both CM1 and CM2 scores, totaling a
combined 90% or greater. These insurers would be less affected
by increased capital requirements if their portfolios became
stressed. Three of the insurance companies had exposure to CM3
mortgages, two of which had exposures greater than 17% and the
third had an exposure slightly over 6%. Exposure to CM4 mortgages
was de minimis, and no firm had allocations in CM5 mortgages.
Exhibit 11
CM Test Score
Portfolio Lenders Survey: U.S. Life Insurers’ Mortgage Outlook