MBA: Commercial/MF Debt Hits $3.3T

Commercial and multifamily mortgage debt outstanding rose to $3.3 trillion at the end of 2007, a 12% increase from the level recorded a year earlier, according to the Mortgage Bankers Association. The Washington-based trade group said that, based on an analysis of Federal Reserve data, commercial and multifamily mortgage debt outstanding increased by $84.6 billion in the fourth quarter alone. Multifamily debt outstanding stood at $831 billion at the end of 2007 after a record increase of $28.2 billion, or 3.5%, in the fourth quarter. "Fourth-quarter increases in the level of mortgage debt outstanding were driven by increases in the holdings of commercial banks and the government-sponsored enterprises Fannie Mae and Freddie Mac," said Jamie Woodwell, the MBA's senior director for commercial/multifamily research. "Both groups took advantage of capital market disruptions and the lack of [commercial mortgage-backed securities] competition to increase their holdings of commercial and multifamily mortgages." Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with almost $1.4 trillion, or 42% of the total.