Commercial, multi-family mortgage debt jump for first time since 2009

The level of commercial and multi-family mortgage debt that was outstanding grew by 0.1 percent in the second quarter of the year, marking the first quarter-over-quarter increase since the third quarter of 2009, according to a report by the Mortgage Bankers Association.

There was $2.4 trillion in combined outstanding commercial and multi-family mortgage debt outstanding in the second quarter, $3.5 billion more than in the first quarter. Multi-family increased by $3.9 billion or 0.5 percent to $802 billion.

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“For the first time in a year-and-a-half, new commercial and multi-family mortgage originations outpaced the paying off and paying down of existing loans,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Increases in the balance of mortgages held and insured by life insurance companies, Fannie Mae, Freddie Mac and FHA outpaced declines among banks and thrifts and CMBS issues.”

Commercial banks still hold the largest portion of commercial and multi-family mortgages, $792 billion, or 33 percent of the total, the report says. — Katherine Clarke

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