MBA Chart of the Week: Multifamily Mortgages on the Books of Commercial Banks
Commercial banks continue to add multifamily mortgages to their balance sheets at a strong clip.
According to data from the FDIC’s Quarterly Banking Profile, in 2015 FDIC insured institutions increased their holdings of multifamily mortgages by $46.6 billion, the largest increase since the series began in 1993. The 16 percent increase in holdings of multifamily mortgages compares to increases of 15 percent for construction and development loans, 8 percent for auto loans, 7 percent for real estate loans secured by nonfarm nonresidential properties, 7 percent for commercial and industrial loans, 5 percent for credit cards and 2 percent for real estate secured by 1-4 family residential properties.
Commercial banks’ multifamily lending has started 2016 at a pace just below that seen at the beginning of 2015. Through the end of April, commercial banks have added a net of $8.9 billion in multifamily mortgages to their balance sheets. At the same point in 2015 they had added $11.2 billion.
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 Woodwel is Vice President of Commercial Research Estate Research with the Mortgage Bankers Association; hhe can be reached at jwoodwell@mba.org)
