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.
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Developments like the downward swing in total jobs reported Friday, inflation and AI have made nonbank employment more complex and volatile this year.
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Single-family mortgages originated with new scores have been put into private securitizations but these typically have been submitted alongside classic FICOs.
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The collaboration comes after HUD issued several other updates earlier this year aimed at increasing affordability through loosened homebuilding policy.
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Southeast impairments run 150 bps above other regions and alt-doc loans are up 200+ bps since 2025, while DSCR and full-doc improve. Time to review overlays.
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Federal Reserve Gov. Lisa Cook said Thursday that private credit does not seem to pose additional risks to the financial system at the moment, but added that more information about the opaque market is needed.
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A Treasury proposal would remove race and ethnicity from the criteria community development financial institutions can use to establish a targeted market population, a move that could affect institutions serving minority communities.
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