Commercial Debt Down in 2Q09

While the amount of multifamily debt outstanding increased between the first and second quarters of this year, the total commercial/multifamily debt decreased by 0.3%, according to data from the Mortgage Bankers Association. The $3.47 trillion in commercial/multifamily mortgage debt outstanding recorded for the second quarter by the Federal Reserve was a decrease of $9.9 billion from the first quarter 2009. Multifamily mortgage debt outstanding grew to $914 billion, an increase of $6 billion or 0.7% from first quarter. Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1.55 trillion, or 45% of the total. CMBS, CDO and other ABS issuers hold $714 billion, or 21% of the total. Life insurance companies hold $313 billion, or 9% of the total, and savings institutions hold $195 billion, or 6% of the total. The GSEs, agency-backed mortgage pools and GSE-backed mortgage pools, including Fannie Mae, Freddie Mac and Ginnie Mae, hold $195 billion in multifamily loans that support the mortgage-backed securities they issued and an additional $157 billion in "whole" loans in their own portfolios. The agencies are the largest holders of multifamily loans, with a 38% share, followed by commercial banks with a 24% share, securities holders at 12%, state and local governments at 8%, thrifts at 7% and life companies at 6%.