Commercial and multi-family mortgage
debt increased by $6.6 billion to $2.38 trillion in the third quarter, an
increase of 0.3 percent according to the Mortgage Bankers Association (MBA). The multi-family share of that debt increased
to $824.9 billion from $812.8 billion in the second quarter, an increase of
$12.1 billion or 1.5 percent.
MBA tracks commercial and multi-family
mortgages held by various sectors, principally life insurance companies, banks
and thrifts, state and local government, federal government, Agency/Government
sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS);,
and commercial mortgage-backed securities (CMBS) collateralized debt
obligations (CDO) and other asset backed securities (ABS).
The largest amount of multi-family
mortgage debt (44.7 percent) was held in Agency and GSE portfolios. The total in this sector was $368.9 billion
compared to $359.5 billion in the second quarter, an increase of $9.4 billion
or 2.6 percent. This sector accounted
for 77.2 percent of the increase in multi-family debt. Banks and
thrifts held the second largest share of multi-family mortgages, $227.8
billion, up 1.4 percent form Q2 and a 27.6 percent share. CMBS, CDO, and ABS holdings comprised 9.0
percent of the total at $74.3 billion.
This was a decrease in holdings from the second quarter of $2.5 billion
of 3.2 percent. State and local governments
increased their holdings by 2.5 percent to $65.4 billion and held a 7.9 percent
share of the total. While they still
hold only a negligible 0.4 percent of multi-family debt, private pension funds
increased their holdings by 8.2 percent in the third quarter to $3.4 billion.
While multi-family mortgage debt
increased, commercial debt actually decreased during the quarter, due to a $9.4
billion or 1.7 percent drop in CMBS, CDO and other ABS issues. This was partially offset by increases by the
other three major investor groups. Commercial banks
continue to hold the largest share of commercial/multifamily mortgages, $819
billion, or 34 percent of the total.
Commercial banks increased their holdings by 0.5 percent quarter-over-quarter.
the quarterly decrease CMBS, CDO and other ABS issues remain the second largest
holders of commercial/multifamily mortgages, holding $562 billion, or 24
percent of the total. Agency/GSE
portfolios and MBS hold $369 billion, or 16 percent of the total, an increase
of 2.6 percent; and life insurance companies hold $323 billion, or 14 percent
of the total. Many life insurance companies, banks and the GSEs purchase and
hold CMBS, CDO and other ABS issues and these loans appear in the "CMBS, CDO
and other ABS" category.
overall amount of commercial and multifamily mortgage debt continues to grow,"
said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.
"Fannie Mae, Freddie Mac, FHA, life insurance companies and banks are all
increasing their holdings and/or guarantees of commercial and multifamily
mortgages. And for the fourth quarter in a row, the net increase by these
and other investor groups has outpaced a decline in the balance of commercial
and multifamily mortgages held in commercial mortgage backed securities
analysis is based on data from the Federal Reserve Board's Flow of Funds
Account of the United States and the Federal Deposit Insurance Corporation's
Quarterly Banking Profile.