Borrowing in the Space is up +19% YOY in Q2
Despite widespread economic headwind, the commercial and multi-family lending business has shown incredible resiliency. Loan originations in the space were up 19% in the second quarter of 2022 compared to this time last year, and they are up 15% from the first quarter of last year, according to the Mortgage Bankers Association (MBA).
Like larger financial institutions, credit unions across the country are recognizing the opportunities that remain in commercial lending even while other areas of the economy experience volatility.
The Outlook on Commercial/Multi-Family Loans
Even amid the current economic volatility, there is still ample opportunity for investors and lenders within commercial and multi-family investing. This is evident in the latest growth metrics from MBA, but it also stands in accordance with the behavior among Extensia Financial’s partner organizations.
Brianna Vaughan, Extensia’s EVP Operations, is one of Extensia’s lending experts helping credit unions execute these loans. She states, “Although we expect lending data to show a slowdown over the second half of the year following this record growth, investors and lenders continue to show bullishness in the space and a healthy capacity for capital where cash flow allows for it.”
Thus, lenders continue to show confidence in the future outlook for the industry and in the strength of borrowers with outstanding loans. Plus, there are a number of ongoing commercial real estate trends that will continue to push this space farther, including:
- Increased demand for office space
- Re-imagined physical retail locations
- Rising demand in suburban/rural areas
- Growing rental market
How Extensia Financial Can Help
As the commercial and multi-family real estate market continues on its hot streak, organizations such as Extensia Financial will be the key to helping credit unions better serve their members with top-quality commercial loan products.
“At Extensia, we specialize in commercial real estate lending–and have done so for decades,” says Vaughan. “That means we’re uniquely skilled and seasoned at quickly preparing and closing loans that work best for credit unions’ members. We get the job done in a way that’s seamless and preferable to all parties.”
So with Extensia Financial’s expertise and wide range of offerings, our credit union partners continue to receive top-tier support with the origination and servicing of their commercial and multi-family loans.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial is one of the most seasoned credit union service organizations (CUSO) focused on commercial lending. We partner with credit unions to connect them to commercial and multi-family investors across the United States. For decades, we have offered competitive and collaborative loans and uniquely support and guide our partners through the entire lifecycle of our loans. Extensia Financial is a proud member of the AVANA Family of Companies.
Contact us today to learn more about becoming an Extensia Financial partner.