GSE Increase Commercial / Multi-Family Mortgage Debt In Q1

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GSEs led to an increase in commercial / multi-unit mortgage debt in the first quarter, according to a recently released quarterly report by the Mortgage Bankers Association.

While overall commercial / multi-family mortgage debt rose 1.1% over this period, the portfolios of agencies, GSE and MBS nearly tripled their commercial / multi-family mortgage holdings at this rate.an increase of $ 23 billion, or 2.8%.

In the first quarter, total commercial / multi-family loans rose $ 44.6 billion to $ 3.93 trillion.

Debt alone on multi-family mortgages increased by $ 28.8 billion (1.7%) to $ 1.7 trillion from the fourth quarter of 2020.

Eighty percent of this multi-family growth came from federal agencies and GSE’s mortgage-backed securities and portfolio. Apartment buildings accounted for about two-thirds of the sector’s aggregate growth.

Commercial banks continue to account for the largest share (38%) of US $ 1.5 trillion in commercial / multi-unit mortgages. Portfolios of agencies, GSE and MBS are the second largest holders of commercial / multi-unit mortgages (22%) at $ 861 billion. Life insurance companies own $ 588 billion (15%), and CMBS, CDO and other issues of ABS – $ 540 billion (14%).

The $ 28.8 billion increase in outstanding multi-unit mortgage debt over the fourth quarter of 2020 represents an increase of 1.7%. In dollar terms, portfolios of agencies, GSE and MBS showed the largest gains.$ 23 billion (2.8%)in their holdings on multi-family mortgage debt. CMBS, CDO and other issues of ABS increased their investments by $ 1.4 billion (2.8%), while commercial banks increased by $ 1.4 billion (0.3%). Private pension funds showed the largest reduction in their holdings on multi-family mortgage debt – by $ 65 million (11.1%). Financial companies saw the largest decline in their holdings on multi-unit mortgage debt – by US $ 59 million (1.1%).

Looking ahead, Jamie Woodwell, MBA vice president of commercial real estate research, said that as the uncertainty surrounding the COVID-19 pandemic eases, lenders will gain greater clarity on different properties and types of property and will be in a stronger position to issue new ones. credits.

There are already signs that lenders became more aggressive after the pandemicsaid Brian Stoffers, CBRE President of Debt and Structured Capital Markets. “This year they are working at full capacity. “Banks, especially banks with large monetary centers, have pulled back three or four months. Now they are making great strides. “

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