Commercial and multifamily mortgage debt outstanding decreased for the first time in five quarters during the first quarter of this year, according to the ""Mortgage Bankers Association"":http://mbaa.org/default.htm (MBA).[IMAGE]
The 0.2 percent decline, which translated to $4.9 billion, left the nation's total commercial and multifamily mortgage debt at $2.41 trillion at the end of the quarter.
""Banks and thrifts, Fannie Mae, Freddie Mac, and FHA increased their commercial and multifamily holdings, but the balance of loans in commercial mortgage-backed securities resumed its decline,"" said Jamie Woodwell, VP of commercial real estate research for the MBA.
The greatest decline in commercial and multifamily debt took place among commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO), and asset-backed securities (ABS). They shed $4.8 billion in debt over the first quarter of this year.
The next-greatest decline took place among private pension funds, which decreased their commercial and multifamily debt by 17 percent over the quarter.
In contrast, agency and GSEs and mortgage-backed securities increased their holdings by $3.7 billion.
Despite the overall decline in commercial and multifamily debt, the multifamily sector alone experienced a $4.1 billion increase over the first quarter of the year.
Agencies and GSEs account for the greatest share of multifamily debt, claiming 45 percent, or $383 billion.
Banks and thrifts hold the next-largest share of multifamily debt--28 percent, or $237 billion.
The remainder is distributed between, CMBS, CDC, and other ABS (8 percent); state and local governments (8 percent); life insurance companies (6 percent); and nonfarm, noncorporate businesses, respectively (2 percent).
The $4.1 billion increase in multifamily debt was driven by agency and GSE and MBS activity. Together, they contributed $3.7 billion of the increase. Commercial banks also took on an additional $2.7 billion.
However, CMBS, CDC, and other ABS shed some of their multifamily debt--about $3.5 billion over the quarter.