MBA: Overall Outstanding Mortgage Debt Stays Steady

WASHINGTON, DC-The level of commercial/multifamily mortgage debt outstanding decreased in Q3, to $3.43 trillion, based on the Mortgage Bankers Association’s analysis of the Federal Reserve Board Flow of Funds data. That is a 0.8% drop from Q2 2009, or $28 billion. Multifamily mortgage debt outstanding dropped to $912 billion, a decrease of $1 billion or 0.1 percent from second quarter.

However the overall amount of mortgage debt outstanding that is backed by commercial/multifamily properties has remained relatively unchanged due to increased holdings by banks and thrifts and the GSEs, according to a statement by Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research.

While the top line numbers from the Fed reflect a drop in the holdings of banks and thrifts, once construction loans are excluded, this group actually increased its holdings of loans backed by commercial and multifamily properties.