Commercial Debt Outstanding Increases 1%: MBA

Mortgage & Real Estate

Commercial and multifamily mortgage debt outstanding grew 1% in 3Q13 over 2Q13, which is the largest quarterly growth since 2008, according to the Mortgage Bankers Association.

Total commercial/multifamily debt outstanding stood at $2.47 trillion as of Sept. 30. Multifamily mortgage debt outstanding rose to $887 billion, an increase of $10.8 billion, or 1.2%, from the second quarter.

All four major investor categories increased their debt holding during the quarter. Banks and thrifts hold $870 billion of commercial and multifamily debt, an increase of over $14 billion from 2Q13.

The dollar amount of loans that make up commercial mortgage-backed securities is $563 billion, an increase of nearly $6 billion. Agency and government-sponsored enterprise portfolios hold $391 billion, an increase of over $2 billion. Life companies hold $333 billion, up over $7 billion.

Banks and thrifts hold 35% of commercial debt, with conduits at 23%, GSEs 16% and life companies 14%. Other investors, including federal, state and local governments, hold the remainder. The federal government increased its holdings of multifamily debt during the quarter by over $1 billion.

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