Banks Led the Way in Q3's Outstanding Commercial, Multifamily Debt
Mortgage Bankers Association report shows 1.9% rise overall.
The amount of total commercial and multifamily mortgage debt outstanding increased 1.9%, or by $70 billion, during the third quarter, led almost entirely by a large increase in the portfolio holdings of banks and other depositories, according to a report from the Mortgage Bankers Association.
Jamie Woodwell, MBA’s head of commercial real estate research, said in prepared remarks that the increase in bank holdings “was the largest quarterly increase of any individual capital source in the history of MBA’s series.”
For most other capital sources, Woodwell said their holdings of commercial and multifamily mortgages grew at a slower rate than during the second quarter of 2022.
“The results generally match those of MBA’s Quarterly Originations Index, which showed third-quarter 2022 originations down 13 percent on a quarterly basis, with depositories the sole major capital source to see an increase,” he added.
Total commercial/multifamily mortgage debt outstanding rose to $4.45 trillion at the end of the third quarter. Multifamily mortgage debt alone increased $36.1 billion (1.9%) to $1.93 trillion from the second quarter of 2022.
Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.7 trillion.
Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (21%) at $926 billion. Life insurance companies hold $655 billion (15%), and CMBS, CDO and other ABS issues hold $610 billion (14%).