Commercial and Multifamily Mortgage Debt Outstanding Increased $70 Billion in Q3

The Mortgage Bankers Association (MBA) on Thursday (12-13-22), released its latest Commercial/Multifamily Mortgage Debt Outstanding (CMMDO) quarterly report. According to the CMMDO, in 2022Q3, the level of commercial/multifamily mortgage debt outstanding increased by 1.6%, or $70.0 billion.

According to the MBA, total commercial/multifamily mortgage debt outstanding rose to $4.45 trillion at the end of Q3. Multifamily mortgage debt alone increased $36.1 billion, or 1.9%, to $1.93 trillion from 2022Q2.

The four largest 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.

Commercial banks continue to hold 38%, the largest share, of commercial/multifamily mortgages at $1.7 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages holding 21% or $926 billion. Life insurance companies hold 15% or $655 billion, and CMBS, CDO and other ABS issues holding 14% or $610 billion. Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.