Commercial/Multifamily Debt Rises Among All Investor Groups

For the fourth consecutive quarter, commercial/multifamily mortgage debt outstanding increased in the third quarter, according to the a ""report"":http://mortgagebankers.org/files/Research/CommercialServicing/Q312CMFDebtOutstanding.pdf from the ""Mortgage Bankers Association (MBA)."":http://www.mbaa.org/default.htm

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The increase was 0.3 percent over the third quarter of this year.

In dollar volume, commercial/multifamily mortgage debt rose $6.6 billion over the quarter, bringing the national total to $2.38 trillion.

""Fannie Mae, Freddie Mac, FHA, life insurance companies and banks are all increasing their holdings and/or guarantees of commercial and multifamily mortgages,"" said Jamie Woodwell, VP of commercial real estate research at MBA.

The greatest portion of commercial and multifamily debt outstanding is currently held by banks and thrifts, which account for about 34.3 percent of total debt.

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Commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO), and other asset-backed securities (ABS) issuers hold the next-largest share, about 23.6 percent.

Agency and GSE portfolios and mortgage-backed securities (MBS) claim the third-largest share â€" 15.5 percent.

By dollar amount, the greatest increase in commercial/multifamily debt in the third quarter occurred among agency and GSE portfolios and mortgage-backed securities. This sector increased its debt by $9.4 billion. As a percentage, the increase is about 2.6 percent.

By percentage, real estate investment trusts (REITs) claimed the greatest increase in commercial/multifamily debt. REIT debt was up 3.5 percent over the quarter.

CMBS, CDO, and other ABS issuers increased their commercial/multifamily debt by $9.5 billion, 1.7 percent.

Banks and thrifts increased their debt by 0.5 percent, $4.4 billion.

When multifamily mortgage debt is isolates, GSEs and MBS hold 45 percent of the nation's outstanding debt.

Banks and thrifts claim the second-largest share â€" 28 percent.

CMBS, CDO, and ABS hold 9 percent of the total multifamily debt.

The remainder is dispersed between state and local governments, life insurance companies, and the federal government, which hold 8 percent, 6 percent, and 2 percent, respectively.