CRE, Multifamily Mortgage Debt Outstanding Continues to Climb

The level of commercial/multifamily mortgage debt outstanding increased by $6.6 billion, or 0.3 percent, in the third quarter of 2012, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). The $2.38 trillion in outstanding commercial/multifamily mortgage debt was $6.6 billion higher than the second-quarter 2012 figure.

The overall amount of commercial and multifamily mortgage debt continues to grow, according to Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Fannie Mae, Freddie Mac, FHA, life insurance companies, and banks are all increasing their holdings and/or guarantees of commercial and multifamily mortgages,” he said. Contributing to the problem is that during the fourth quarter in a row, the net increase by these and other investor groups has outpaced a decline in the balance of commercial and multifamily mortgages held in commercial mortgage-backed securities, say commercial real estate experts.