MBA: Commercial/MF Debt Up 2.8% in 3Q

Commercial and multifamily mortgage debt outstanding rose 2.8% in the third quarter, or $87.7 billion, exceeding the $3.2 trillion level, according to the Mortgage Bankers Association.Multifamily mortgage debt outstanding alone rose to $813 billion, an increase of $23.5 billion, or 3%, from that of the second quarter. "The third quarter included the periods immediately before and immediately after the dramatic adjustments in the capital markets," said Jamie Woodwell, MBA's senior director of commercial and multifamily research. "As a result, commercial/multifamily mortgage debt outstanding grew to a new record -- $3.2 trillion -- but the quarter-over-quarter change in mortgage debt outstanding fell from $107 billion last quarter to $87.7 billion this quarter. Even with the drop, the $87.7 billion increase in Q3 still marked the fourth-largest increase on record." The trade group gets input for the report from Federal Reserve data. Commercial banks continue to hold the largest share of commercial and multifamily mortgages, at $1.35 trillion, or 42% of the total. Securitization avenues (issuers of commercial mortgage-backed securities, collateralized debt obligations, and other asset-backed securities) hold the second-largest share, at $760 billion, or 24% of the total.