WASHINGTON, DC - The level of commercial/multifamily mortgage debt outstanding increased to $2.83 trillion in the fourth quarter of 2015, an increase of $59.7 billion, or 2.2 percent, over the third quarter, according to data collected by the Mortgage Bankers Association (MBA). On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2015 was $184.5 billion higher than at the end of 2014, an increase of 7.0 percent. Multifamily mortgage debt outstanding rose to $1.06 trillion, an increase of $35.4 billion, or 3.4 percent, from the third quarter and $99.8 billion, or 10.4 percent, from the fourth quarter of 2014.
"During 2015, commercial and multifamily mortgage debt grew by the largest amount since the series began in 2007; multifamily mortgage debt grew at the fastest pace since that series began in 1993; and the amount of commercial and multifamily mortgage debt held in agency and GSE portfolios and MBS, and on bank balance sheets, grew more than in any previous year on record," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "At the same time, the amount of mortgage debt held in commercial mortgage backed securities (CMBS) continued to decline. While 2015 marked many new records, recent market and regulatory changes have the potential to impact the availability of commercial and multifamily mortgage debt during 2016."
The analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDOs) and other asset backed securities (ABS) for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with $1.08 trillion, or 38 percent of the total.
CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $515 billion, or 18 percent of the total. Agency and GSE portfolios and MBS hold $461 billion, or 16 percent of the total, and life insurance companies hold $386 billion, or 14 percent of the total. Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the CMBS, CDO and other ABS categories.