Multifamily mortgage debt unchanged at $2.4 trillion in 1Q

Outstanding commercial multifamily mortgage debt remained mostly unchanged at $2.4 trillion in the first quarter, falling a slight 0.1% from the final three months of 2010, the Mortgage Bankers Association said in its quarterly Commercial Real Estate/Multifamily Finance report. Of all commercial/multifamily investor types, five increased their holdings in these mortgages, while banks, thrifts and finance firms reported declines in total balances within the segment. Data for the report was compiled from the Federal Reserve’s Flow of Funds data. Commercial banks continued to dominate the segment, holding 33% of the nation’s commercial/multifamily mortgages, with a total balance of $794 billion. CMBS, CDO and other ABS issuers ranked second in the space, holding $626 billion in loans, or roughly 26% of the total market. That group is followed by agency, GSE portfolios and mortgage-backed securities, all of which represent 14% or $327 billion of the total market, and life insurance firms that hold $299 billion, or 13% of outstanding debt in the segment. State and local governments, along with other miscellaneous investors, hold the rest of the market. When looking solely at multifamily mortgage debt outstanding, the MBA report says agency, GSE portfolios and MBS possess the largest share of mortgages in the space, owning $327 billion, or 41%, of the total debt. They are followed by banks and thrifts with $214 billion, or 27%. CMBS, CDO and other ABS issuers hold $98 billion, or 12%; state and local governments hold $75 billion, or 9%; life insurance companies hold $47 billion, or 6%; and the federal government holds $14 billion, or 2%. Write to Kerri Panchuk.