Not surprisingly, agency/GSE lenders also command the largest share of the multifamily mortgage debt universe: $573 billion, or 47% of the total. That compares to their 18% share of the overall commercial/multifamily mortgage pie. Within that broader arena, life insurance companies hold $454 billion, or 15% of the total, up 1.3% over the course of Q3, while CMBS—along with CDOs and other ABS—hold $431 billion, or 14% of the total.

Q3's biggest gainers on a percentage basis for commercial/multifamily debt outstanding were insurers other than life companies, with a 5.6% increase. Another big gainer on a percentage basis was the REIT sector, where holdings grew 3.25 although real estate trusts' share of the commercial/multifamily mortgage pie is small at 2.5%. Conversely, finance companies saw their holdings decrease 0.9% during the quarter, while the mortgage holdings of state and local government retirement funds declined by 0.8%.

Looking strictly at multifamily mortgage debt, the quarterly increase over Q2 levels was slightly higher at 2.1%, or $24.9 billion. After agency/GSE lenders, which also saw the biggest dollar increase with $19.8 billion, the biggest percentage gainers in multifamily debt were nonfinancial corporate business with 2.9% and CMBS with 2.8%.

The quarter's biggest percentage decline in share of multifamily mortgage debt outstanding was for private pension funds, whose holdings slipped 4.4%. The federal government's decline of $378 million represented the biggest loss of market share on a dollar basis.

Separately, MBA said Tuesday that executive search firm Spencer Stuart had been retained to assist in finding a successor to CEO and president David H. Stevens, who announced his retirement this past October. The association's CEO and president since 2011, Stevens will remain in his current position until Sept. 30, 2018 to ensure a smooth transition.

WASHINGTON, DC—The third quarter was notable in the commercial/multifamily mortgage space for one key development. That was the reversal of a decade-long downward trend in CMBS' holdings, which rose by 0.8% or $3.6 billion from Q2, according to Mortgage Bankers Association data. Overall, Q3 saw commercial/multifamily mortgage debt outstanding increase by $45.4 billion, or 1.5%, to $3.11 trillion.

“The third quarter marks a significant turning point for the CMBS market,” says Jamie Woodwell, VP of commercial real estate research at MBA. “With only a few exceptions, since 2008, the balance of commercial and multifamily mortgages held in CMBS has declined each quarter. That years-long trend ended this quarter.”

With the so-called “wall of maturities” now largely demolished, and given a “vibrant” market for new originations, “we are once again seeing more new loans being originated for CMBS than we are seeing in old loans paying off and paying down,” Woodwell continues. “The result is the largest increase in outstanding CMBS mortgages since the end of 2007.”

All four of the major lender groups tracked by MBA saw their holdings in commercial/multifamily mortgages increase during Q3. Commercial banks continue to hold the largest share of commercial/multifamily mortgages: $1.3 trillion, or 40% of the total. However, banks' holdings increased more slowly during Q3 than those of agency/GSE entities, which increased their holdings by 3.6%, or $19.8 billion, compared to banks' 0.7% increase.

Not surprisingly, agency/GSE lenders also command the largest share of the multifamily mortgage debt universe: $573 billion, or 47% of the total. That compares to their 18% share of the overall commercial/multifamily mortgage pie. Within that broader arena, life insurance companies hold $454 billion, or 15% of the total, up 1.3% over the course of Q3, while CMBS—along with CDOs and other ABS—hold $431 billion, or 14% of the total.

Q3's biggest gainers on a percentage basis for commercial/multifamily debt outstanding were insurers other than life companies, with a 5.6% increase. Another big gainer on a percentage basis was the REIT sector, where holdings grew 3.25 although real estate trusts' share of the commercial/multifamily mortgage pie is small at 2.5%. Conversely, finance companies saw their holdings decrease 0.9% during the quarter, while the mortgage holdings of state and local government retirement funds declined by 0.8%.

Looking strictly at multifamily mortgage debt, the quarterly increase over Q2 levels was slightly higher at 2.1%, or $24.9 billion. After agency/GSE lenders, which also saw the biggest dollar increase with $19.8 billion, the biggest percentage gainers in multifamily debt were nonfinancial corporate business with 2.9% and CMBS with 2.8%.

The quarter's biggest percentage decline in share of multifamily mortgage debt outstanding was for private pension funds, whose holdings slipped 4.4%. The federal government's decline of $378 million represented the biggest loss of market share on a dollar basis.

Separately, MBA said Tuesday that executive search firm Spencer Stuart had been retained to assist in finding a successor to CEO and president David H. Stevens, who announced his retirement this past October. The association's CEO and president since 2011, Stevens will remain in his current position until Sept. 30, 2018 to ensure a smooth transition.