Commercial and Multifamily Mortgage Debt Hit New Peak in Q3

Dec 13, 2018

The commercial mortgage-backed securities (CMBS) delinquency rate published by Trepp LLC broke through the three percent threshold in February, dropping from 3.11 percent February to 2.87 percent for a new post-recession low

The level of commercial and multifamily mortgage debt reached a new peak in the third quarter, according to data from the Mortgage Bankers Association (MBA).

Total commercial/multifamily debt outstanding reached $3.32 trillion in the third quarter, breaking the record of $3.27 trillion set in the second quarter. Multifamily mortgage debt alone increased by $26.1 billion to $1.3 trillion. Commercial banks continue held the largest share (of commercial/multifamily mortgages at $1.3 trillion, or 40 percent of the market.

Agency and government-sponsored enterprise (GSE) portfolios and mortgage-backed securities were the second largest holders of commercial/multifamily mortgages (20 percent) at $648 billion, followed by life insurance companies at $497 billion (15 percent), and commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities issues holding $458 billion (14 percent).

“Favorable commercial real estate fundamentals and strong lender demand pulled commercial and multifamily mortgage debt outstanding to a new high,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Multifamily mortgage debt continues to lead the pack–accounting for more than half of the total increase–and Fannie Mae, Freddie Mac and FHA remain the key drivers of multifamily mortgage growth. All four of the major lender groups added to the balance of loans they hold.”

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Phil Hall

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Dec 13, 2018

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