MBA: Commercial/MF Debt Nearing $3T

Commercial and multifamily mortgage debt outstanding went up to $2.95 trillion at the end of 2006, a 12.7% increase from the level recorded at the end of 2005, according to the Mortgage Bankers Association.The Washington-based mortgage bankers trade group said that, based on an analysis of Federal Reserve data, commercial and multifamily mortgage debt outstanding increased by $99 billion, or 3.5%, in the fourth quarter alone. Multifamily debt outstanding stood at $731 billion at the end of 2006, an increase of 7.5% over the year and of 2.1% ($15 billion) in the fourth quarter alone. "The most recent Federal Reserve Beige Book characterized commercial real estate markets as strong, solid, and firming," said Jamie Woodwell, the MBA's senior director for commercial/multifamily research. "We also see low delinquencies and other signs of mortgage performance continuing to show strength." Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with almost $1.3 trillion, or 44% of the total, while Fannie Mae, Freddie Mac, and Ginnie Mae hold the largest share, at 30%, of the multifamily debt outstanding.