Commercial and multifamily mortgage debt outstanding remained essentially unchanged at $2.4 trillion in the first quarter, decreasing by 0.1% from the fourth quarter of 2010, according to the latest Mortgage Bankers Association (MBA) analysis of the Federal Reserve Board Flow of Funds data.
According to the MBA, the $2.4 trillion in commercial/multifamily mortgage debt outstanding was $3 billion lower than the figure from the fourth quarter. Multifamily mortgage debt outstanding rose to $800 billion, an increase of $3 billion – or 0.4% – from the third quarter.
Commercial banks held the largest share of commercial/multifamily mortgages – $794 billion – or 33% of the total debt. Commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities issues were the second-largest holders, at $626 billion (26%), while agency and government-sponsored enterprises portfolios and mortgage-backed securities held $327 billion (14%) and life insurance companies held $299 billion (13%).
‘New commercial and multifamily mortgage lending offset the amount of debt paid off and paid down during the first quarter, leaving the outstanding balance essentially unchanged,’ says Jamie Woodwell, the MBA's vice president of commercial real estate research. ‘Five of the seven largest investor groups increased their holdings of commercial and multifamily mortgages during the quarter. Banks and thrifts and finance companies saw declines in the balances of commercial and multifamily mortgages they hold.’
