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Multifamily Mortgage Debt Increases in Q4 2014

Digested from “Commercial, Multifamily Mortgage Debt in U.S. at $2.6 Trillion”
World Property Journal (3/17/15) Gerrity, Michael

In the fourth quarter of 2014, multifamily mortgage debt outstanding increased by 2.5 percent, to $964 billion, according to the Mortgage Bankers Association. Year over year, debt outstanding increased by 6.6 percent. 

Agency and government-sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS) hold 43 percent of total multifamily mortgages; banks and thrifts hold 31 percent; state and local governments hold 9 percent; commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities hold 8 percent; life insurance companies hold 6 percent; and the non-farm non-corporate business holds 2 percent. 

Between the third and fourth quarters, agency and GSE portfolios and MBS saw the largest dollar increase in their holdings of multifamily mortgage debt, adding $12.5 billion over that period. At 11.2 percent, real estate investment trusts (REITs) recorded the largest percentage increase in holdings of multifamily mortgages over this period. For the year, REITs increased their holdings of multifamily mortgages by 61.2 percent. 

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