MBA: Commercial/MF Debt Rose 3.4% in 2Q

Commercial and multifamily mortgage debt outstanding rose 3.4% ($103.8 billion) in the second quarter, reaching a level of over $3.1 trillion, according to an analysis of Federal Reserve Board data by the Mortgage Bankers Association.Considering just multifamily mortgage debt, the amount outstanding rose 2.1%, to $778 billion. In the second quarter, securitization avenues -- commercial mortgage-backed securities, collateralized debt obligations, and asset-backed securities -- saw the largest increase in dollar terms in their holdings of commercial and multifamily mortgage debt: $49 billion, or 7.5%, which represents 48% of the total $104 billion increase. "These numbers reflect the period preceding the recent changes in the credit markets, and show investors continued to invest heavily in commercial/multifamily mortgage debt during the second quarter," said Jamie Woodwell, MBA's senior director commercial/multifamily research. "And while next quarter's numbers are likely to show the impact of the recent market disruptions, commercial/multifamily fundamentals remain strong -- property markets remain solid, loan delinquency rates are extremely low, and bonds backed by commercial real estate loans continue to perform well." The MBA can be found online at http://www.mortgagebankers.org.