Multifamily Mortgage Debt Increases to $806 B

Mortgage & Real Estate

Outstanding mortgage debt secured by apartment buildings rose to $806 billion at Sept. 30, a $4.1 billion increase (up 0.5%) from mid-year, according to new figures compiled by the Mortgage Bankers Association.

But MBA noted that the level of commercial/multifamily mortgage debt outstanding was essentially unchanged in 3Q, while three of the four major investor groups in these loans increased their holdings.

Commercial mortgage debt – including multifamily – was $2.4 trillion at Sept. 30, $533 million lower than the second quarter 2011 figure.

“Three of the four leading investor groups increased their holdings of commercial and multifamily mortgages during the third quarter,” said Jamie Woodwell, MBA’s vice president of CRE research. “Life insurance companies, banks, and Fannie Mae/Freddie Mac/FHA each increased their investments in commercial/multifamily mortgages during the period.”

The CMBS market, sidelined during the quarter by U.S. and European sovereign debt struggles, saw $7.4 billion more in pay-offs and pay-downs than was added. “The net effect was no appreciable change in the amount of commercial/multifamily mortgage debt outstanding,” the trade group said.

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $793 billion, or 33%.

CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $607 billion, or 26%.

Agency, GSE portfolios and MBS hold $338 billion, or 14% of the total, and life insurance companies hold $310 billion, or 13%, MBA found.

Daily Briefing | Tuesday, December 13, 2011

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