Commercial and multifamily mortgage debt outstanding rose to $2.64 trillion at the end of 2005, a 14.2% rise over 2004 levels.For the fourth quarter alone, commercial and multifamily debt rose by $103 billion, or 4.1%, which is also a new record, the Mortgage Bankers Association has reported based on data provided by the Federal Reserve Board. Outstanding multifamily mortgage debt alone stood at $674 billion at the end of 2005, representing a 10.2% increase for the year. And for the fourth quarter, multifamily debt was up $19 billion, or 2.9%. Doug Duncan, the MBA's chief economist, said the trends "show every sign of continuing." Commercial banks hold the largest share of the debt, at $1.1 trillion, or 43%, of the total (including commercial loans that are backed by property pledged by businesses, rather than income-producing properties). Commercial mortgage-backed securities pools hold $553 billion, or 21%, of the debt. Considering just multifamily mortgage debt outstanding, Fannie Mae, Freddie Mac, and Ginnie Mae together hold $195 billion, or 29%, the MBA said. Commercial banks hold $140 billion of the multifamily mortgage debt, 21% of the total.
