WASHINGTON, DC—Commercial and multifamily mortgage debt outstanding ticked upward by 1.6% in the second quarter, the Mortgage Bankers Association said Wednesday. Among the four major lending classes, CMBS—a tally also including CDOs and other ABS—was the outlier in experiencing a decline, as it also proved to be in terms of delinquencies during Q2.
For CMBS, the 2.4% quarterly drop represented a continuation of the decline in volume, which stood at $427.5 billion as Q2 ended. MBA cites a greater volume of CMBS loans being paid off or down than were originated.
However, says MBA's Jamie Woodwell, “This may be one of the last quarters of this long-term trend, as the 10-year loans that were made in 2006 and 2007 have now almost all matured, and there are relatively few CMBS maturities during the remainder of 2017 and 2018.” CMBS balances declined by more than $20 billion in Q1 and by $10 billion in the most recent quarter. An even greater decline, percentage-wise, was seen in CMBS' share of multifamily mortgage debt; it declined 5.7% during Q2
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
