1.29.14: Commercial/Multifamily Mortgage Debt Posts Largest Increase Since 2008

Commercial/multifamily mortgage debt outstanding increased by $25.2 billion in the third quarter, as all four investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). In its MBA Commercial Real Estate/Multifamily Finance Mortgage Debt Outstanding – Q3 report, the MBA reports total commercial/multifamily debt outstanding stood at $2.47 trillion in the third quarter, a 1% increase from the second quarter. Multifamily mortgage debt outstanding rose to $887 billion, up $10.8 billion, or 1.2%, from the second quarter.

“Commercial and multifamily mortgage debt outstanding grew by the largest amount since 2008,” said Jamie Woodwell, MBA Vice President of commercial real estate research. “The third quarter also marked the largest increase in the outstanding balance of loans in commercial mortgage-backed securities (CMBS) since 2007. There were increases in the holdings of every major investor group.”

Commercial banks continue to hold the largest share of commercial/multifamily mortgages at $870 billion, or 35%. CMBS, CDO and other ABS issuers are the second-largest holders with $563 billion, or 23%. Agency/government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS) hold $391 billion, or 16%, while life insurance companies hold $333 billion, or 14%.

This entry was posted in CMBS Securities, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

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