Commercial/Multifamily Mortgage Debt Outstanding Rises to $4.6 Trillion in Q2

The Mortgage Bankers Association (MBA) on Tuesday (9-19-23) reported in its latest quarterly report on Commercial/Multifamily Mortgage Debt Outstanding that the level of mortgage debt outstanding for the category increased by $37.3 billion (USD), or 0.8%, in Q2.

According to MBA data, total commercial/multifamily mortgage debt outstanding rose to $4.6 trillion at the end of Q2. Compared to Q1, multifamily debt alone increased $26.4 billion, or 1.3%, to $2.03 trillion.

The four largest investor groups in the category are banks and thrifts; federal agency and government sponsored enterprises (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO), and other asset-backed securities (ABS) issues. The breakdown in dollars is as follows:

• Commercial banks continue to be the largest lenders, holding 38% of commercial/multifamily mortgages at $1.8 trillion.
• Agency and CSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages at 21%, or $971 billion.
• Life insurance companies hold 15% at $692 billion.
• CMBS, CDO, and other ABS issues hold 13% at $593 billion.

The MBA notes that 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.