The level of commercial/multifamily mortgage debt outstanding was essentially unchanged in the third quarter, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA).
The $2.4 trillion in commercial/multifamily mortgage debt outstanding was just $533 million lower than the second-quarter 2011 figure. Multifamily mortgage debt outstanding rose to $806 billion, an increase of $4.1 billion (0.5%) from the second quarter.
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with $793 billion – 33% of the total. Commercial mortgage-backed securities (CMBS), collateralized debt obligations and other asset-backed securities are the second-largest holders of commercial/multifamily mortgages, holding $607 billion – 26% of the total. Agency and government-sponsored enterprise portfolios and mortgage-backed securities hold $338 billion – 14% of the total, and life insurance companies hold $310 billion (13%)of the total.
‘Life insurance companies, banks, and Fannie Mae/Freddie Mac/Federal Housing Administration each increased their investments in commercial/multifamily mortgages during the period,’ says Jamie Woodwell, MBA's vice president of commercial real estate research. ‘The CMBS market, which was sidelined during the quarter by U.S. and European sovereign debt struggles and other capital markets disruptions, saw $7.4 billion more in loans pay-off and pay-down than was added. The net effect was no appreciable change in the amount of commercial/multifamily mortgage debt outstanding.’