Largest U.S. CMBS lenders by market share 2023 | Statista (2024)

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Largest U.S. CMBS lenders by market share 2023 | Statista? ›

Citibank, Wells Fargo Bank, and Goldman Sachs were the three largest loan contributors to the commercial mortgage

JPMorgan Chase & Company, Eastdil Secured, Goldman Sachs, Morgan Stanley, and Deutsche Bank Securities, Inc. were the top originators for commercial mortgage-backed securities (CMBS) JLL, JPMorgan Chase & Company, PNC Real Estate, Meridian Capital Group, and KeyBank were the top originators for depositories.

The CMBS market has seen private-label origination of $30.7 billion year-to-date, a 67 percent drop from the $92.4 billion seen during the same period last year, according to data from the New York-based CRE Finance Council.

Who are CMBS lenders? CMBS lenders and CMBS agency organizations range across many different entities, from major investment banks to smaller but well-respected names you may not have heard before. The top CMBS lenders list includes JP Morgan, Deutsche Bank, Goldman Sachs, and Wells Fargo.

So, who are the active participants in the CMBS market? CMBS Market Originators → CMBS loans are offered by financial institutions – termed conduit lenders – such as full-service investment banks with a lending function and capital market divisions, traditional commercial banks, and non-bank alternative lenders.

They are issued by a US government agency or federally chartered corporation, such as Fannie Mae, Freddie Mac or Ginnie Mae.

The Federal Reserve is the single largest agency MBS investor through its large-scale asset purchase program, with total holdings of $2.5 trillion as of October 2021.

The Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to purchase agency CMBS as needed to support and sustain the smooth functioning of the agency CMBS market and the effective transmission of monetary policy.

Commercial mortgage-backed security (CMBS) loans are a type of popular commercial real estate loan secured by a first-position mortgage for properties such as warehouses, offices, apartments, hotels, shopping centers, and retail buildings. They are offered by conduit lenders, as well as investment and commercial banks.

How do CMBS make money? ›

Unlike banks, which generally keep loans on their balance sheets, CMBS lenders pool their loans together, creating commercial mortgage backed securities, and selling them to investors on the secondary market. Due to risk retention rules, CMBS lenders do have to keep 5% of each loan on their balance sheet.

CMBS are backed by commercial real estate properties such as office buildings, shopping centers, and hotels, while MBS are backed by residential properties. Commercial properties tend to have higher credit risks than residential properties due to their higher vacancy rates and lower occupancy levels.

Interest rates: CMBS loans come with a fixed interest rate, based on the Treasury interest rate. They may also have a favorable introductory payment period. Term length: CMBS loans have a normal term length of 5 to 10 years, usually ending with a balloon payment.

Ethan Penner is often credited with being the individual who created the CMBS market. While working at Nomura Securities Co., he allocated billions of dollars to real estate lending when many banks and insurance companies abandoned the practice amid steep losses during the Savings and Loan Crisis.

A CMBS is a group of commercial property loans that have been pooled together and securitized. CMBS are broken into various layers, or tranches, each with different levels of credit quality, risk, and return.

Other loans are expected to rise 37.0% to $237 billion this year. Total commercial production for 2023 is forecast at $444 billion, down 46% from 2022, and basically unchanged from its Oct. 19, 2023, forecast. The MBA reported Jan.

Total commercial and multifamily borrowing and lending can only go up this year following a record-slow 2023, according to two new forecasts. The Mortgage Bankers Association expects commercial loan origination to rise to $576 billion in 2024, a 29% increase from 2023's estimated total of $444 billion.