MBA: Commercial/MF Debt Hits $2.76T

Commercial and multifamily mortgage debt outstanding rose to $2.764 trillion in the second quarter, a 2.8% increase from the level recorded in the first quarter, according to the Mortgage Bankers Association.Multifamily mortgage debt outstanding alone reached $703 billion at the end of the second quarter, up 1.3% from that of the first quarter, the trade association said. "With mortgage bankers' originations up 24% in the first half of the year and servicing volumes at record levels, the industry is more efficient than ever at connecting real estate with capital," said Doug Duncan, the MBA's chief economist. Commercial banks hold the largest share of commercial/multifamily mortgages, at 44% of the total (including "commercial and industrial" loans, as well as loans on income-producing properties). Commercial mortgage-backed securities pools are next, holding 20% of the total, followed by life insurance companies, with 10% of the total. Considering just multifamily mortgages, the government-sponsored enterprises and Ginnie Mae hold the largest share of multifamily mortgages, at 30% of total multifamily debt outstanding. The MBA based its statistics on an analysis of Federal Reserve Board flow-of-funds data. The association can be found online at http://www.mortgagebankers.org.