MBA: Commercial, Multifamily Mortgage Debt Up In Q3

The level of commercial and multifamily mortgage debt outstanding increased by $6.6 billion, or 0.3%, in the third quarter, according to new data from the Mortgage Bankers Association (MBA).

The $2.38 trillion in outstanding commercial/multifamily mortgage debt was $6.6 billion higher than the second quarter 2012 figure. Multifamily mortgage debt outstanding rose to $825 billion, an increase of $12.1 billion or 1.5% from the second quarter of 2012.

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $819 billion, or 34% of the total. Commercial mortgage-backed securities (CMBS), collateralized debt obligations and other asset-backed securities issues are the second largest holders of commercial/multifamily mortgages, holding $562 billion, or 24% of the total.

‘The overall amount of commercial and multifamily mortgage debt continues to grow,’ says Jamie Woodwell, MBA's vice president of commercial real estate research. ‘Fannie Mae, Freddie Mac, the Federal Housing Administration, life insurance companies and banks are all increasing their holdings and/or guarantees of commercial and multifamily mortgages. And for the fourth quarter in a row, the net increase by these and other investor groups has outpaced a decline in the balance of commercial and multifamily mortgages held in CMBS.’


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