MBA: Commercial/MF Debt Rose in 1Q

Commercial and multifamily mortgage debt outstanding rose 1.8% ($60.8 billion) in the first quarter, reaching a level of $3.4 trillion, according to an analysis of Federal Reserve Board data by the Mortgage Bankers Association. Considering only multifamily mortgage debt, the amount outstanding rose 2.2%, to $856 billion. The largest increase in percentage terms in holdings of commercial and multifamily mortgage debt occurred in the government-sponsored enterprise sector, where holdings grew by 7% ($10 billion) in the first quarter. "The global credit crunch meant a net decline in the balance of mortgages held in [commercial mortgage-backed securities, collateralized debt obligations, and other asset-backed securities], but banks, thrifts, life insurance companies, Fannie Mae, Freddie Mac, and nearly every other investor group increased their holdings of commercial and multifamily mortgages during the quarter," said Jamie Woodwell, MBA's senior director commercial/multifamily research. The MBA can be found online at http://www.mortgagebankers.org.