MBA: Commercial/MF Debt Climbed in 2Q

Commercial and multifamily mortgage debt outstanding rose 1.5% ($51.3 billion) in the second quarter, reaching a level of $3.44 trillion, according to an analysis of Federal Reserve Board data by the Mortgage Bankers Association. Considering only multifamily mortgage debt, the amount outstanding rose 1.9%, to $875 billion. The largest increase in percentage terms in holdings of commercial and multifamily mortgage debt occurred in the government-sponsored enterprise sector, where holdings grew by 6% in the second quarter. "Despite the persistent credit crunch, investors increased their holdings of commercial/multifamily mortgages in the second quarter," said Jamie Woodwell, the MBA's vice president of commercial real estate research. "The only major investor group to see a decline in their holdings was the commercial mortgage-backed securities market, which has been most profoundly affected by the credit crunch." The MBA can be found online at http://www.mortgagebankers.org.