$3.18T in Commercial/Multifamily Mortgage Debt Outstanding in 2017

Commercial/multifamily mortgage debt outstanding reached $3.18 trillion at the end of 2017, a 6.7 percent increase from the $200.3 billion level reached one year earlier, according to the Mortgage Bankers Association (MBA).

 

The mortgage debt outstanding for this sector was $73.6 billion during the fourth quarter of last year, up 2.4 percent from the third quarter. Multifamily mortgage debt outstanding rose to $1.26 trillion, an increase of $41.6 billion, or 3.4 percent, from the third of quarter.

 

Commercial banks held the largest share of commercial/multifamily mortgages last year with $1.3 trillion, or 40 percent of the total, followed by agency and government-sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS) holding $606 billion, or 19 percent. Life insurance companies held $468 billion, or 15 percent, and commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO) and other asset-backed securities (ABS) issues held $441 billion, or 14 percent.

 

Looking solely at multifamily mortgages, agency and GSE portfolios and MBS held the largest share in 2017 with $606 billion, or 48 percent, followed by commercial banks with $404 billion, or 32 percent. State and local governments held $94 billion, or 8 percent, life insurance companies held $73 billion, or 6 percent, CMBS, CDO and other ABS issues held $43 billion, or 3 percent, and nonfarm non-corporate business held $14 billion, or 1 percent.