Commercial, Multifamily Mortgage Debt hits $2.9 Trillion in Mid-2016

Total commercial and multifamily outstanding debt hit $2.9 trillion by the middle of 2016, according to the Mortgage Bankers Association’s recent “Commercial/Multifamily Mortgage Outstanding Report.” The total amount of debt outstanding increased 1.4% from Q1 2016 to Q2 2016, as four major investor groups increased their real estate holdings.

The four major investor groups consist of bank and thrift; asset-backed securities (such as CMBS and CDOs); the government-sponsored entities (Fannie Mae and Freddie Mac); and life insurance companies and pension plans.

“The amount of commercial and multifamily mortgage debt outstanding grew to a new record during the second quarter, despite a record drop in the balance of CMBS loans outstanding,” said the MBA’s Jamie Woodwell. He added that the CBMS loans are being paid down more quickly than new loans are originated.

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