The level of commercial/multifamily mortgage debt outstanding remained essentially unchanged at $2.4 trillion in the first quarter 2011, a 0.1 percent decrease from the previous quarter, according to a recent report from the Mortgage Bankers Association (MBA).
The $2.4 trillion in commercial/multifamily mortgage debt outstanding was $3 billion lower than the fourth quarter 2010 figure. Multifamily mortgage debt outstanding rose to $800 billion, an increase of $3 billion or 0.4 percent from the fourth quarter.
"New commercial and multifamily mortgage lending offset the amount of debt paid-off and paid-down during the first quarter, leaving the outstanding balance essentially unchanged," said Jamie Woodwell, MBA vice president of commercial real estate research. "Five of the seven largest investor groups increased their holdings of commercial and multifamily mortgages during the quarter. Banks and thrifts and finance companies saw declines in the balances of commercial and multifamily mortgages they hold."
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $794 billion, or 33 percent of the total, according to a statement. Commercial mortgage-backed securities, collateralized debt obligation and other asset-backed security issues are the second largest holders of commercial/multifamily mortgages, holding $626 billion, or 26 percent of the total. Agency and government-sponsored enterprise portfolios and mortgage-backed securities hold $327 billion, or 14 percent of the total, and life insurance companies hold $299 billion, or 13 percent of the total.
