Commercial and multifamily real estate loan balances increased by $8.1 billion in the first quarter compared with the end of last year, according to data compiled by the Mortgage Bankers Association.
There is now $2.37 trillion in outstanding commercial and multifamily mortgage debt. Multifamily mortgage debt outstanding made up most of the quarter’s increase, at $6.9 billion, and is now $818 billion.
Jamie Woodwell, MBA’s vice president of commercial real estate research, said, “Banks, Fannie Mae, Freddie Mac, FHA and life insurance companies all increased their holdings of commercial and multifamily mortgages, more than offsetting declines among commercial mortgage-backed securities and other investor groups.”
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $808 billion, or 34%.
Securities issuers are the second largest holders of commercial/multifamily mortgages, with $575 billion (24%), followed by agency/GSE portfolios with $352 billion 15%) and life insurers at $317 billion or 13%. Various forms of other investors hold the rest. CMBS and collateralized debt obligations purchased by banks, the GSEs and life companies are included in the securities issuers’ numbers.
Banks added nearly $13.5 billion of commercial/multifamily loans to their portfolio in the quarter, while securities issuers lost $11.7 billion.
The GSEs added nearly $7 billion while life companies added almost $4 billion.
