Commercial, Multifamily Mortgage Debt Rises

Commercial and multifamily mortgage debt in the United States increased to $3.76 trillion at the end of the second quarter, according to a report released Monday by the Mortgage Bankers Association.

The level of commercial and multifamily debt increased by $43.6 billion in the quarter – or 1.2 percent.

“Despite a drop off in new commercial and multifamily mortgage originations in the second quarter, the total amount of mortgage debt outstanding continued to rise,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The pandemic is having different impacts on various property types and capital sources. Loans backed by multifamily properties accounted for almost three-quarters of the total growth, and Fannie Mae, Freddie Mac, and FHA accounted for nearly three-quarters of that amount.”

MBA reports that commercial banks hold the largest share (39 percent) of commercial/multifamily mortgages at $1.5 trillion. Agency and GSE portfolios and mortgage backed securities are the second largest holders of commercial/multifamily mortgages (21 percent) at $775 billion. Life insurance companies hold $574 billion (15 percent), and commercial mortgage backed securities, collateralized debt obligation and other asset backed securities issues hold $518 billion (14 percent).