The recently released Commercial / Multifamily Mortgage Debt Outstanding report revealed debt outstanding at the end of 2017 was $3.18 trillion, a rise of 6.7 percent from 2016.
“Commercial and multifamily mortgage debt outstanding continued to grow in 2017, albeit at a slightly slower rate than overall property values,” Jamie Woodwell, the Mortgage Bankers Association’s vice president of Commercial Real Estate Research, said. “Even so, 2017 marked the strongest year for mortgage debt growth since 2007, with Fannie Mae, Freddie Mac and FHA leading the market, followed by banks, life companies and real estate investment trusts. The commercial mortgage-backed securities (CMBS) market, which saw a decline for the year as a whole, turned a corner and added $9 billion during the fourth quarter.”
Officials said the analysis summarizes the holdings of loans or if the loans are securitized, the form of the security.
An example of which is many life insurance companies invest both in whole loans for which they hold the mortgage note and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note.
The report is based on data from the Federal Reserve Board’s Financial Accounts of the United States, the Federal Deposit Insurance Corporation’s Quarterly Banking Profile and data from Wells Fargo Securities.