Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

MortgageReal Estate

MBA: Commercial/multifamily outstanding debt posts largest Q1 increase since recession

Commercial/multifamily debt is on the rise as each major investor class increases its holdings

Outstanding commercial/multifamily mortgage debt just posted the largest first quarter increase since before the Great Recession, a report from the Mortgage Bankers Association shows.

According to the report, commercial/multifamily mortgage debt increased by $44.3 billion in Q1. The new total is $3.21 trillion, $1.3 trillion of which is multifamily mortgage debt.

MBA Vice President of Commercial Real Estate Research Jamie Woodwell said that this is an encouraging sign that indicates a strong market.

"During the first three months of 2018, commercial and multifamily mortgage debt outstanding increased more than during any other Q1 since before the Great Recession," Woodwell said in a statement.

"Interestingly, Q1 holdings grew more slowly this year than last among the three largest investor groups: banks, life insurance companies, and the GSEs [government sponsored enterprises]. This year's increase was driven by the CMBS [commercial mortgage backed securities] market, which added $6 billion of mortgages to its balances. This is a sharp contrast to the $21 billion decline over the same period in 2017. For the first time since 2007, CMBS has seen three straight quarters of increase," Woodwell continued.

This means that things are going swimmingly in the financial world, and Woodwell says the industry has strong fundamentals to thank for the good vibes.

"Strong property fundamentals and property values continue to support mortgage borrowing and lending…property owners have multiple sources of capital from which to get financing," Woodwell told HousingWire.

In Q1, banks and thrifts saw the largest increase in their holdings of commercial/multifamily mortgage debt with an increase of $14.7 billion or 1.2%.

In terms of strictly multifamily mortgage debt, there was a 1.5%, $19.3 billion increase from Q4 to Q1. GSE portfolios and mortgage backed securities were responsible for the lion’s share of this increase, bolstering their holdings by 1.8%, a $10.8 billion increase.

In terms of percentage growth, finance companies saw the largest growth, increasing their holding by 5%. This is stark contrast to pension funds which saw the largest decrease in holdings by percentage with a 4.8% decrease.

Most Popular Articles

The housing market is losing steam

Mortgage applications for new home purchases decreased 3% from May and 23.8% year over year, suggesting buyer fatigue in the housing market.

Jul 20, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please