A recent report by the Mortgage Bankers Association showed that commercial and multifamily mortgage debt rose in the second quarter of 2015.
The report showed outstanding debt rose 1.4 percent to $38.5 billion from the first quarter of 2015. Total commercial/multifamily debt outstanding stood at $2.72 trillion at the end of the second quarter. Multifamily mortgage debt outstanding rose to $1.0 trillion, an increase of $23.6 billion, or 2.4 percent, from the first quarter.
“Rising property values are supporting increased levels of commercial and multifamily mortgage debt,” MBA Vice President for Commercial Real Estate Research Jamie Woodwell said in a news release. “The total amount of commercial and multifamily mortgage debt outstanding continues to grow at a strong pace, particularly on the multifamily side. For the first time ever, multifamily mortgage debt outstanding now exceeds $1 trillion and is growing at almost 10 percent per year.”
The four major investor groups in commercial and multifamily debt are: bank and thrift; commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues; federal agency and government sponsored enterprise (GSE) portfolios and mortgage backed securities (MBS); and life insurance companies.
The analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1.0 trillion, or 37 percent of the total.