U.S. Commercial, Multifamily Debt Hits $4 Trillion in Q2
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According to the latest report from the Mortgage Bankers Association Outstanding commercial and apartment building mortgage debt Quarterly report, outstanding commercial and multi-family mortgage debt rose $ 60.7 billion, or 1.5 percent) in the second quarter of 2021.
Total outstanding commercial and multi-family debt rose to $ 3.98 trillion at the end of the second quarter of 2021. Multi-family home mortgage debt alone increased $ 23.8 billion, or 1.4 percent, from the first quarter of 2021 to $ 1.7 trillion.
Jamie Woodwell
“Strong demand from all major sources of capital continued to increase the outstanding mortgage debt for commercial and apartment buildings,” said Jamie Woodwell, vice president of commercial real estate research, MBA. “In line with solid housing fundamentals and values, there has been a solid increase in outstanding apartment mortgage debt. In addition, the rise in mortgage debt for other non-apartment buildings was the largest since 2007 – a sign of renewed interest in other types of property. “
The four largest groups of investors are: banks and savings banks; Federal and government sponsored corporate portfolios (GSE) and mortgage-backed securities (MBS); Life insurance companies; and commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO) and other asset-backed securities (ABS) issues.
Commercial banks continue to hold the largest share (38 percent) of commercial / multi-family mortgages at $ 1.5 trillion. Agency and GSE portfolios, as well as MBS, are the second largest commercial / multi-family mortgage holders (22 percent) at $ 871 billion. Life insurance companies hold $ 596 billion (15 percent) and CMBS, CDO, and other ABS issues hold $ 557 billion (14 percent). Many life insurance companies, banks, and GSEs buy and hold CMBS, CDO, and other ABS issues. These loans appear in the report under the “CMBS, CDO and other ABS” category.
The analysis of the MBA summarizes the loan portfolio or, in the case of securitized loans, the form of the security. For example, many life insurance companies invest in both entire loans that they hold the note on (which appear in this data under life insurance companies), as well as CMBS, CDOs, and other ABS that the security issuers and trustees hold the note on (and those here under CMBS , CDO and other ABS topics appear).
OUTSTANDING MULTI-FAMILY MORTGAGE DEBT
If we only look at multi-family mortgages in the second quarter of 2021, Agency and GSE portfolios as well as MBS hold 871 billion companies with 174 billion US dollars (10 percent), state and local governments with 106 billion US dollars (6 percent) and CMBS, CDO, and other ABS issues at $ 53 billion, or 3 percent. Non-agricultural companies hold $ 20 billion, or 1 percent.
EXCELLENT CHANGES TO COMMERCIAL / MULTIFAMILY MORTGAGE DEBT
In the second quarter, commercial banks saw the largest increases in their commercial / multi-family mortgage debt holdings in US dollar terms – an increase of $ 23.4 billion, or 1.6 percent. CMBS, CDO and other ABS issues increased their holdings by $ 16.7 billion (3.1 percent), agency and GSE portfolios and MBS increased their inventories by $ 10.2 billion (1.2 percent) ) and life insurance companies increased their portfolios by $ 8.7 billion, or 1.5 percent. .
In percentage terms, other insurance companies saw the largest increase in their commercial / multi-family mortgage holdings at 5.0 percent. In contrast, private pension funds recorded a portfolio decline of 5.7 percent.
MULTIFAMILY MORTGAGE DEBT CHANGES AWARDED
The $ 23.8 billion increase in outstanding residential mortgage debt from Q1 2021 is a 1.4 percent increase. In dollar terms, the Agency and GSE portfolios, as well as MBS, saw the largest increases – $ 10.2 billion, or 1.2 percent – in their holdings of multi-family mortgage debt. Commercial banks increased their holdings by $ 10.0 billion (2.1 percent) and life insurance companies by $ 2.5 billion (1.5 percent). REITs saw the largest percentage increase in their multi-family mortgage debt holdings at $ 391 million, or 6.0 percent. Private pension funds saw the largest decline in their holdings of multi-family mortgage debt at $ 65 million, or 12.5 percent.