The level of commercial/multifamily mortgage debt outstanding decreased by $10.4 billion, or 0.4%, in the second quarter, according to the Mortgage Bankers Association (MBA).
The $2.37 trillion in outstanding commercial/multifamily mortgage debt was $10.4 billion lower than the first quarter figure. However, multifamily mortgage debt outstanding rose to $826 billion, an increase of $5.4 billion or 0.7% from the first quarter.
‘Commercial mortgage-backed securities (CMBS) loans paid off, paid down and were liquidated at a far faster pace than new CMBS loans were originated during the quarter,’ says Jamie Woodwell, MBA's vice president of commercial real estate research. ‘The drop in CMBS balances more than offset the increases in holdings by Fannie Mae, Freddie Mac and the Federal Housing Administration, banks and life insurance companies.’