Revealed – how high did commercial and multifamily debt get in Q1?

While all major capital sources increased their holdings of commercial and multifamily mortgages during the quarter, Woodwell noted that nearly two-thirds of the overall growth came from multifamily properties. Furthermore, he said that 80% of that multifamily growth came from agency and GSE mortgage-backed securities and portfolios.

The largest holders of commercial/multifamily mortgages were banks (38% market share) at $1.5 trillion. Agency and GSE portfolios and MBS followed with 22% share at $861 billion. Life insurance companies held $588 billion (15%), while commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO), and other asset-backed securities (ABS) issues held $540 billion (14%).

“As the uncertainty from the COVID-19 pandemic wanes, lenders will have greater clarity into the different properties and property types and be in stronger positions to make new loans,” Woodwell said.