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MBA: Multifamily mortgage debt remains flat

The amount of commercial and multifamily mortgage debt outstanding stayed flat in the fourth quarter, the Mortgage Bankers Association said.

The trade group noted multifamily mortgage debt hit $808 billion in 4Q, up 0.5% from the third quarter.

The period also brought investors back into the commercial market as key investor types increased their holdings.

Total commercial and multifamily mortgage debt for the period hit $2.4 trillion, which is $3 billion lower than debt levels recorded in Q3.

"The amount of mortgage debt on commercial and multifamily properties remained essentially flat in the fourth quarter," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Fannie Mae, Freddie Mac, FHA, life insurance companies and banks and thrifts all increased their holdings of commercial and multifamily mortgages."

When evaluating just multifamily mortgage debt, the largest share, or $342 billion worth, is held by agency, government-sponsored enterprise portfolios and investors in mortgage-backed securities.

Agency, MBS and GSE portfolios saw their investment in commercial/multifamily mortgage debt grow by $4.3 billion in 4Q.

Meanwhile, life insurance companies increased their holdings of commercial and multifamily mortgages by $3.8 billion, or 1.2%.

Private pension funds had the largest percentage gain in holdings of commercial and multifamily mortgages, with their holdings rising 5.9% in the fourth quarter.

Overall, commercial banks continue to hold the largest share of commercial and multifamily mortgages, with the segment holding $794 billion worth, or 34%, of the total in 4Q.

kpanchuk@housingwire.com 

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