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Commercial Mortgage Debt Outstanding Hits Record High

Commercial Mortgage
Posted on 
September 22, 2016

Commercial and multifamily mortgage debt outstanding hit a record high during the second quarter of 2016, according to data released by the Mortgage Bankers Association (MBA).

The organization reported that multifamily mortgage debt outstanding rose by 2.6% from the first quarter, reaching $1.09 trillion, while commercial debt overall reached $2.09 trillion, a 1.4 percent increase.

Commercial banks held the largest share of this debt with $1.1 trillion or 39% of total commercial and multifamily mortgage debt outstanding, followed by GSEs and mortgage-backed securities, which held a total of $486 billion or 18% of the total.

“The amount of commercial and multifamily mortgage debt outstanding grew to a new record during the second quarter, despite a record drop in the balance of commercial mortgage-backed securities loans outstanding,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “The CMBS market is seeing far more loans paying off and paying down than new loans being originated.”

CMBS and other securities debt declined 4.1% from the first quarter to a total of $20.9 billion.

Banks saw the largest increase in commercial and multifamily mortgage debt outstanding with a 3.3% rise to $36.1 billion. GSEs Fannie Mae and Freddie Mac increased their holdings by 2.9% or $13.8 billion, and life insurance companies saw an increase of $8.9 billion or 2.2%.


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