According to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report, the level of commercial/multifamily debt outstanding increased 0.9% to $40.1 billion in Q1.
Total commercial/multifamily mortgage debt outstanding increased to $4.79 trillion at the end of Q1. Multifamily mortgage debt alone increased 1.1%, or $23.7 billion, to $2.10 trillion from 2023Q4.
According to MBA, the four largest investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO), and other asset-backed securities (ABS) issues.
Commercial banks continue to hold the largest share with a 38% stake in the commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages, holding 22% at $1.01 trillion. Life insurance companies hold $720 billion, or 15%, and CMBS, CDO, and other ABS issues hold $604 billion, or 13%. Many life insurance companies, banks, and the GSEs purchase and hold CMBS, CDO, and other ABS issues. These loans appear in the report in the “CMBS, CDO, and other ABS” category.
Commenting on the report, MBA Head of Commercial Real Estate Research Jamie Woodwell said:
“The amount of commercial mortgage debt outstanding increased in the first quarter of 2024, despite slow mortgage originations activity. Every major capital source increased its holdings of commercial mortgages, as fewer loans than usual were paid off through property sales or refinancings.”
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