Commercial/multifamily mortgage debt outstanding increased by 0.1% in the second quarter, the first quarterly increase since the third quarter of 2009, according to new data released by the Mortgage Bankers Association (MBA).
The $2.4 trillion in commercial/multifamily mortgage debt outstanding was $3.5 billion higher than in the first quarter. Multifamily mortgage debt outstanding increased to $802 billion, up 0.5% from $3.9 billion in the first quarter.
Commercial banks continue to hold the largest share of commercial/multifamily mortgages – $792 billion, or 33% of the total. Commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities issuances held $617 billion, or 26%. Agency and government-sponsored enterprise portfolios and other mortgage-backed securities held $332 billion, or 14%, while life insurance companies held $304 billion, or 13%.
‘For the first time in a year-and-a-half, new commercial and multifamily mortgage originations outpaced the paying off and paying down of existing loans,’ says Jamie Woodwell, MBA vice president of commercial real estate research.
The MBA's analysis is based on data from the Federal Reserve Board's Flow of Funds Account of the United States and the Federal Deposit Insurance Corp.'s Quarterly Banking Profile. The full report is online.
