COVID-19 has different effects on various property types and capital sources, MBA says
There was a 1.2% increase in the total commercial/multifamily mortgage debt outstanding in the second quarter.
According to the Mortgage Bankers Association’s latest report, total commercial/multifamily debt outstanding rose by $43.6 billion to $3.76 trillion at the end of the second quarter. Multifamily mortgage debt alone posted a $32.2 billion (2%) gain, up to $1.6 trillion from the first quarter.
"Despite a drop off in new commercial and multifamily mortgage originations in the second quarter, the total amount of mortgage debt outstanding continued to rise," said Jamie Woodwell, vice president of commercial real estate research at MBA.
The largest holders of commercial/multifamily mortgages are banks (39% share) at $1.5 trillion. Federal agency and GSE portfolios and MBS followed (21% share) at $775 billion. Meanwhile, life insurance companies hold $574 billion (15%), and CMBS, CDO, and other ABS issues hold $518 billion (14%).
"The pandemic is having different impacts on various property types and capital sources,” Woodwell said. “Loans backed by multifamily properties accounted for almost three-quarters of the total growth, and Fannie Mae, Freddie Mac, and FHA accounted for nearly three-quarters of that amount."