Originations of commercial and multifamily mortgage loans continued strong in the second quarter the Mortgage Bankers Association reports, and were up 40% compared to last year’s second quarter. Originations were also up 26% from first quarter levels.

At the helm of the increased origination activity was a rise in commercial mortgage-backed securities loans and loans backed by hotel properties, the mortgage bankers’ trade association reports. Volume was also positively influenced by real estate investment trust (REIT) privatizations.

"A number of large deals helped boost commercial/multifamily origination volumes in the second quarter," said Jamie Woodwell, MBA’s senior director of commercial/multifamily research. "As a result, the quarter saw significant growth in CMBS and hotel loans. Overall, second quarter commercial/multifamily originations remained strong despite the initial phases of a general re-pricing of risk in the commercial/multifamily and other capital markets."

Compared to the second quarter of 2006, loans for hotel properties were up 330%.