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While multi-family mortgage debtrnincreased, commercial debt actually decreased during the quarter, due to a $9.4rnbillion or 1.7 percent drop in CMBS, CDO and other ABS issues.  This was partially offset by increases by thernother three major investor groups. Commercial banksrncontinue to hold the largest share of commercial/multifamily mortgages, $819rnbillion, or 34 percent of the total. rnCommercial banks increased their holdings by 0.5 percent quarter-over-quarter.rn</p

Despiternthe quarterly decrease CMBS, CDO and other ABS issues remain the second largestrnholders of commercial/multifamily mortgages, holding $562 billion, or 24rnpercent of the total.  Agency/GSErnportfolios and MBS hold $369 billion, or 16 percent of the total, an increasernof 2.6 percent; and life insurance companies hold $323 billion, or 14 percentrnof the total. Many life insurance companies, banks and the GSEs purchase andrnhold CMBS, CDO and other ABS issues and these loans appear in the “CMBS, CDOrnand other ABS” category.</p

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“Thernoverall amount of commercial and multifamily mortgage debt continues to grow,”rnsaid Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. rn”Fannie Mae, Freddie Mac, FHA, life insurance companies and banks are allrnincreasing their holdings and/or guarantees of commercial and multifamilyrnmortgages.  And for the fourth quarter in a row, the net increase by thesernand other investor groups has outpaced a decline in the balance of commercialrnand multifamily mortgages held in commercial mortgage backed securitiesrn(CMBS).”</p

MBA’srnanalysis is based on data from the Federal Reserve Board’s Flow of FundsrnAccount of the United States and the Federal Deposit Insurance Corporation’srnQuarterly Banking Profile.

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