Commercial and multi-family debt finally heading down

by Kelli Rogers19 Jun 2013

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 (MBA).

The 0.2% 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% over the quarter. 



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