Multifamily mortgage debt tops $1T in 2Q

Commercial and multifamily mortgage debt continues rise

The level of commercial/multifamily mortgage debt outstanding increased by $38.5 billion in the second quarter of 2015, as three of the four major investor groups increased their holdings. 

That is a 1.4% increase over 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 trillion, an increase of $23.6 billion, or 2.4%, from the first quarter.

“Rising property values are supporting increased levels of commercial and multifamily mortgage debt,” said Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “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% per year."

The four major investor groups 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.  For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1 trillion, or 37% of the total.

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