Total commercial/multifamily debt outstanding in the US reached an all-time high of $2.68tr at the end of the first quarter, according to the Mortgage Bankers Association.
Outstanding debt increased in Q1 by a combined $40.4bn across the four major investor groups: bank and thrift; CMBS, CDO and other ABS; federal agency, GSE portfolios and MBS; and life insurance companies.
“Strong first quarter mortgage originations boosted the level of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s VP of commercial real estate research.
Increases in multifamily debt were particularly steep in the first quarter, rising to $989bn, a $20.6bn increase over the previous quarter.
“Multifamily mortgages continued to grow even more quickly than the market as a whole, with banks increasing their portfolios by $8bn and agency and GSE portfolios (and MBS) increasing their holdings by $10bn,” Woodwell added.
Commercial banks continue to hold the largest share of commercial/multifamily mortgages: $985bn, or 37 percent of the total. CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $534bn, or 20 percent of the total. Agency and GSE portfolios and MBS hold $422bn, or 16 percent of the total, and life insurance companies hold $363bn, or 14 percent of the total.
Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans are factored into the “CMBS, CDO and other ABS” category.