MBA: Commercial/MF Debt Rises

Commercial and multifamily mortgage debt outstanding increased 2.4% to a record $2.2 trillion in the third quarter, according to the Mortgage Bankers Association.The figures were based on an analysis of Federal Reserve Board data. "Last quarter the growth was powered almost entirely by the commercial bank and CMBS sectors, which pumped an additional $44 billion into the market," said Doug Duncan, the MBA's chief economist. Commercial banks hold the largest share of these mortgages, at $951 billion (43% of the total), the MBA said. Commercial mortgage-backed securities issuers hold $401 billion (18%), followed by life insurance companies, $247 billion (11%), and savings institutions, $178 billion (8%). Government-sponsored enterprises hold $124 billion in the form of multifamily mortgages that back the securities they issue and also hold $57 billion in their own portfolios, for a total share of 8.4%.