Commercial/Multifamily Mortgage Debt Continues to Rise

(To read more on the multifamily market, click here.)

WASHINGTON, DC-Commercial/multifamily mortgage debt rose by 2.9% in the third quarter, according to the Mortgage Bankers Association. The level of commercial and multifamily mortgage debt now stands at $2.85 trillion, according to MBA, which analyzes the Federal Reserve Board Flow of Funds data to derive its own numbers.

“Nearly every investor group increased their stake in commercial/multifamily mortgages in the third quarter,” says Jamie Woodwell, MBA’s senior director of commercial/multifamily research, in a statement. “As investors assess different investment options for their capital, commercial/multifamily mortgages continue to attract a great deal of interest.”

Commercial banks still are the largest investor group in commercial/multifamily mortgages, representing 44%, or $1.2 trillion, of the total. The next largest investor group is the CMBS, CDO and other ABS pools asset class, with $583 billion, or 21% of the total. Life insurance companies hold $279 billion, or 10% of the total; and savings institutions hold $212 billion, or 8% of the total. Government Sponsored Enterprises hold 8% of the total: $137 billion that support their own mortgage-backed securities and an additional $79 billion whole loans in their own portfolios.

However, GSEs and Ginnie Mae are the largest investor of just multifamily mortgage holdings at 30% of the total share–$137 billion in federally related mortgage pools and $79 billion in their own portfolios.