According to a report released this week by the Mortgage Bankers Association (MBA), multifamily/commercial mortgage debt stands at $2.83 trillion as of the end of 2015. The figure as of the end of the third quarter was $2.77 trillion, and this represents a 2.2 percent increase or $59.7 billion.
Comparing the outstanding mortgage debt on a yearly basis, the amount at the end of 2015 has increased by $184.5 million compared to 2014, and represents a 7 percent increase.
The outstanding multifamily mortgage debt rose by 3.4 percent or $35.4 billion in the third quarter of 2014, reaching $1.06 trillion, while in the increase in the fourth quarter was 10.4 percent and stood at $99.8 billion.
The MBA analyzed the figures based on the loan holdings or value of security provided for the mortgages. For instance, Life Insurance Companies invest in whole loans that are secured under the mortgage note, collateralized debt obligations (CDOs), commercial mortgage-backed securities (CMBS), and asset backed securities (ABS) where the trustees and issuer of the security hold the note and may also fall under CDO, CMBS, as well as ABS.
Commercial banks which play a leading role in this sector are still the largest holders of multifamily/commercial mortgages, and account for 38 percent of the market share with total holding being $1.08 trillion.
According to the MBA report, CDO, CMBS, and other ABS issues come second after commercial banks in regard to the biggest holders of commercial/multifamily mortgage debt. The latest figures that they hold is a total of $515 billion which represents 18 percent share of the whole market.
GSE portfolios and Agency and MBS account for 16 percent of the total which is $461 billion, while life insurance companies share is 14 percent or $386 billion. Many commercial banks, life insurance companies, and the GSEs buy and hold CDO, CMBS, and other ABS issues, and the loans are categorized as CDO, CMBS, or other ABS classification.