MBA: Commercial Mortgages Rose 10.6%

Commercial and multifamily mortgages outstanding rose to $2.29 trillion at the end of 2004, up 10.6% from the amount outstanding at the end of 2003, according to the Mortgage Bankers Association.Multifamily mortgage debt alone stood at $601 billion at the end of 2004, up 7.9% from the figure for 2003, based on an analysis of Federal Reserve data, the MBA said. "With the tight integration that has developed between commercial mortgage markets and capital markets, both domestic and international, the first few months of 2005 are showing that trend continuing," said Doug Duncan, the MBA's chief economist and senior vice president. Commercial banks hold 43% of the outstanding commercial and multifamily mortgage debt, followed by commercial mortgage-backed securities pools, at 18% of the total, and life insurance companies, at 11%. Savings institutions hold 8% of the total, and the government-sponsored enterprises and "federally related mortgage pools" hold 8%. Considering just multifamily mortgage debt, Fannie Mae, Freddie Mac, and Ginnie Mae hold the biggest share, at 30% of the outstanding debt, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.