Commercial/Multifamily Mortgage Debt Outstanding Increases $24.5 Billion in Q2

  

 Washington, DC -- The level of commercial/multifamily mortgage debt outstanding increased by $24.5 billion, or one percent, in the second quarter of 2013, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA).

Jamie Woodwell

The $2.45 trillion in outstanding commercial/multifamily mortgage debt was $24.5 billion higher than the first quarter 2013 figure. Multifamily mortgage debt outstanding rose to $875 billion, an increase of $10.9 billion, or 1.3 percent, from first quarter 2013.

“A strong appetite among investors to put their money to work in commercial and multifamily mortgages led to an increase in the level of mortgage debt outstanding,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.

  “In the second quarter alone, banks increased their holdings of commercial and multifamily mortgages by $16 billion; Fannie Mae, Freddie Mac and FHA increased their multifamily holdings and guarantees by $5.6 billion and life insurance companies increased their commercial and multifamily holdings by $4.0 billion.”

The analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. 

For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDOs) and other asset backed securities (ABS) for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $855 billion, or 35 percent of the total.

CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $557 billion, or 23 percent of the total. Agency/GSE portfolios and MBS hold $388 billion, or 16 percent of the total, and life insurance companies hold $326 billion, or 13 percent of the total. 

Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues.  These loans appear in the “CMBS, CDO and other ABS” category.

 For a complete copy of the company’s news release, please contact:

Matt Robinson, (202) 557-2727

Mortgage Bankers Association

1919 M Street, NW, 5th Floor

Washington, DC 20036

(800) 793-6222