MBA Chart of the Week: Largest Q2 Gains, Losses in Commercial/Multifamily Mortgage Debt
Commercial and multifamily mortgage debt outstanding grew to a record high $2.9 trillion during the second quarter. Multifamily mortgage debt outstanding rose to $1.09 trillion (also a record), an increase of $27.6 billion, or 2.6 percent, from the first of quarter.
Banks accounted for 90 percent of the total net increase, adding $36 billion to their holdings of commercial and multifamily real estate loans. Agency and government-sponsored enterprise portfolios and mortgage-backed securities holdings had the second largest gains, increasing by $13.8 billion, or 2.9 percent, while life insurance companies were next with an increase of $8.9 billion, or 2.2 percent.
Commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities issuers saw the largest decrease in their holdings on record, with a decline of $20.9 billion or 4.1 percent. Finance companies’ commercial/multifamily mortgage holdings declined by $2 billion over the quarter. Agency and GSE portfolio and MBS surpassed CMBS to become the second-largest holder (behind banks) of commercial and multifamily mortgage debt.
Regulators overseeing the bank, CMBS, GSE and other markets have been weighing in on commercial and multifamily mortgages. For more on how these actions may affect lending, see our spring report, Sources of Commercial/Multifamily Financing (https://www.mba.org/2016-press-releases/march/mba-releases-research-datanote-on-sources-of-commercial-and-multifamily-mortgage-financing).
MBA’s full report on commercial/multifamily mortgage debt outstanding can be downloaded at https://www.mba.org/commercial/multifamily-research.
To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.
(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at jwoodwell@mba.org. Reggie Booker is associate director of commercial/multifamily research with MBA; he can be reached at rbooker@mba.org.)
