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Commercial/Multifamily Debt Outstanding Increases $25B in Q3

The level of ""commercial/multifamily mortgage debt outstanding"":http://mortgagebankers.org/files/Research/CommercialServicing/Q313CMFDebtOutstanding.pdf increased $25.2 billion in Q3, with all four major investor groups increasing their holdings, the ""Mortgage Bankers Association"":http://mba.org/default.htm (MBA) reported.

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The quarterly increase (representing about a 1.0 percent gain) was the largest since 2008, MBA reported.

As of the end of the third quarter, total commercial and multifamily debt outstanding was $2.47 trillion. Just on the multifamily side, outstanding debt increased $10.8 billion (1.2 percent) to $887 billion.

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Breaking down investor types, commercial banks continue to hold the lion's share of commercial/multifamily loans, taking about $870 billion--35 percent of the total.

Following that, commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDOs), and other asset-backed securities (ABS) issues held the second largest amount of mortgages: $563 billion, or 23 percent of the total. Agency/GSE portfolios ($391 billion, or 16 percent) and life insurance companies ($333 billion, or 14 percent) held most of the remainder.

In dollar terms, banks and thrifts increased their share of commercial/multifamily mortgages the most, gaining $14.5 billion. Life insurance companies increased their holdings by $7.1 billion, and CMBS, CDO, and other ABS issues increasing their holdings by $5.9 billion. Meanwhile, the household sector decreased its holdings at $2.0 billion.

Looking only at multifamily mortgages, agency and GSE portfolios and mortgage-backed securities held the largest share, with $391 billion (44 percent) of total debt outstanding. Banks and thrifts ended the quarter with $252 billion (28 percent); CMBS and other issues held $75 billion (9 percent); and life insurance companies held $52 billion (6 percent).

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