Commercial/Multifamily Mortgage Debt Increased $75.7 Billion in the Third Quarter of 2019

WASHINGTON, D.C. (December 19, 2019) – The level of commercial/multifamily mortgage debt outstanding rose by $75.7 billion (2.2 percent) in the third quarter of 2019, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Total commercial/multifamily debt outstanding rose to $3.59 trillion at the end of the third quarter. Multifamily mortgage debt alone increased $40.6 billion (2.8 percent) to $1.5 trillion from the second quarter. “Strong property markets, low interest rates and low mortgage delinquencies continue to draw more capital to commercial and multifamily mortgages,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Every major capital source increased their holdings of commercial real estate debt during the third quarter, led by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). The growth of investor-driven lenders is also evident, with mortgage REITs on pace to soon become the fifth largest source of capital for commercial and multifamily mortgages.” The four major investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO), and other asset backed securities (ABS) issues. Click to read more at www.mba.org.