Banks and thrifts saw the largest dollarrnincrease in commercial/multifamily holdings during the first quarter, $13.5rnbillion or 1.7 percent.  Agency and GSE portfoliosrnand MBS went up by $6.8 billion or 2 percent.  The third sector, life insurance companies,rnincreased $3.8 billion or 1.2 percent.  The largest drop was in the holdings of commercial mortgage-backed securities (CMBS), collateralizedrndebt obligations (CDO), and other asset-backed securities (ABS) which went downrn$11.7 billion or 2 percent.  On arnpercentage basis the largest increase was 5.3 percent by other insurancerncompanies and the largest percentage drop was in the household sector, down 11rnpercent. </p

“Thernamount of commercial and multifamily mortgage debt outstanding increased duringrnthe first quarter, as lenders put out more in new loans than paid-off or paidrndown,” said Jamie Woodwell, Vice President of Commercial Real Estate Researchrnat the Mortgage Bankers Association.  “Banks; Fannie Mae, Freddie Mac andrnFHA; and life insurance companies all increased their holdings of commercialrnand multifamily mortgages, more than offsetting declines among CMBS and otherrninvestor groups.”</p

The $6.9 billion increase in multifamilyrndebt was accounted for by an increase in agency and GSE portfolios of 6.8rnbillion or 2 percent, commercial banks raised their holdings by $2.4 billion orrn1.1 percent and life insurance companies increased by $595 million or 1.2rnpercent.  The largest decrease was $2.5rnbillion or 2.7 percent by CMBS, CDO, and other ABS issues.  On a percentage basis agency, GSE portfoliornand MBS increased 2 percent while finance companies had the largest percentagerndecrease at 2.9 percent.</p

While commercial banks hold the biggest sharernof commercial/multifamily mortgages with $808 billion or 34 percent of therntotal, agency and GSE portfolios and MBS are first in the percentage of multifamilyrnmortgage debt outstanding, 43 percent or $352 billion.  Banks and thrifts hold $221 billion or 27rnpercent, CMBS, CDO, and other ABS issues hold $88 billion or 11 percent, andrnlocal governments have 8 percent or $69 billion.</p

Thernanalysis summarizes the holdings of loans or, if the loans are securitized, thernform of the security. For example, many life insurance companies invest both inrnwhole loans for which they hold the mortgage note (and which appear in thisrndata under Life Insurance Companies) and in CMBS, CDOs, and ABS for which thernsecurity issuers and trustees hold the note (and which appear here under thernlatter designation).</p

MBArnrecently improved its reporting of commercial and multifamily mortgage debtrnoutstanding.  The new reporting excludes two categories of loans that hadrnformerly been included – loans for acquisition, development and constructionrnand loans collateralized by owner-occupied commercial properties.  Byrnexcluding these loan types, the analysis here more accurately reflects thernbalance of loans supported by office buildings, retail centers, apartmentrnbuildings and other income-producing properties that rely on rents and leasesrnto make their payments.</p

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