Commercial/MF Debt Passes $2.4T

Commercial and multifamily mortgage debt outstanding passed the $2.4 trillion mark in the second quarter, an increase of 3.1% from the level recorded in the first quarter, according to the Mortgage Bankers Association.Commercial banks held the largest share of the total, at $1.05 trillion, or 43%, the trade association said. Commercial mortgage-backed securities conduits were next, holding $467 billion, or 19%, of the debt outstanding. Life insurance companies held $258 billion, or 11% of the total, and savings institutions held $191 billion, or 8%. The government-sponsored enterprises held another 8% of the total. "This sustained investment in commercial and multifamily real estate shows up in record origination volumes, record loan servicing volumes, record levels of CMBS issuance and, here, in record levels of commercial/multifamily mortgage debt outstanding," said Doug Duncan, the MBA's chief economist. The MBA can be found online at http://www.mortgagebankers.org.