Small-Balance Loan Volume Jumps 11%

The small-balance loan market rose to $118 Billion in 2005, up 11% over production levels in the previous year as organic growth and healthy market conditions accelerated demand for financing. In its latest research update on this specialized loan market of small investor and owner-occupied properties under $5 Million in value, Boxwood Means further reports that loan volume in the fourth quarter of 2005 increased 8% over the same period a year ago to $31.3 billion. This loan space, which has yet to attract the level of capital inflows associated with the larger and more institutionally-oriented mortgage markets, is growing steadily as national and regional lenders target this market segment that encompasses millions of small commercial and multi-family properties nationwide. For additional research findings, see Boxwood's latest TrendLines briefing.