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Debt Holdings by GSEs Skyrocket

WASHINGTON, DC-Despite the credit crisis and seeming lack of financing out there, outstanding multifamily mortgage debt has risen to a record level, according to the Mortgage Bankers Association.

By Sule Aygoren Carranza | Updated on March 23, 2008

Sule Aygoren Carranza is managing editor of Real Estate Forum.

WASHINGTON, DC-Despite the credit crisis and seeming lack of financing out there, outstanding multifamily mortgage debt has risen to a record level, according to the Mortgage Bankers Association. Overall, commercial and multifamily loans came in at $3.3 trillion in the fourth quarter, the most recent data available. That’s an increase of nearly $85 billion (or 2.6%) from the third quarter, and $356 billion, or 12%, from the end of 2006. Of that amount, apartment paper accounted for $831 billion, an increase of $28.2 billion (3.5%) over Q3, and $90 billion (12.2%) over the prior year.

Nearly 90% of that uptick was attributable to increases in the holdings of government-sponsored enterprises and Agency-and GSE-backed mortgage pools, as well as commercial banks, according to MBA’s senior director of commercial/multifamily research, Jamie Woodwell. “Both groups took advantage of capital market disruptions and the lack of CMBS competition to increase their holdings of commercial and multifamily mortgages,” he relates.

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