Thursday, September 23, 2010

MBA Analysis: Commercial and Multifamily Mortgage Debt Outstanding Declined $52 Billion or 1.6 Percent in 2Q 2010

 Washington, DC (Sept/ 23, 2010) - The level of commercial/multifamily mortgage debt outstanding decreased in the second quarter, to $3.24 trillion, according to the Mortgage Bankers Association's (MBA) analysis of the Federal Reserve Board Flow of Funds data.

 Declines were driven by drops in commercial and multifamily mortgages held in CMBS and loans held by banks and thrifts.

 The $3.24 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $52 billion or 1.6 percent from the first quarter of 2010.  Multifamily mortgage debt outstanding declined to $843 billion, a decrease of $5.4 billion or 0.6 percent from the first quarter of 2010.

 "Demand for commercial and multifamily mortgages, while increasing, remained weak in the second quarter and contributed to the continuing trend of loans paying down and paying off faster than new ones replace them," said Jamie Woodwell (top right photo), MBA's Vice President of Commercial Real Estate Research.

 "As a result, the balance of mortgage debt outstanding declined for every major investor group with the exception of Fannie Mae's, Freddie Mac's and FHA/Ginnie Mae's multifamily portfolios and MBS."

 Contact: Carolyn Kemp, (202) 557-2727, ckemp@mortgagebankers.org
            

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