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Here's Why CRE Debt Jumped by $38B in Q3


While more US loans are getting paid on time, the Mortgage Bankers Association says outstanding commercial/multifamily mortgage debt increased by $38B over Q3—a 1.4% jump to $2.76T. Talk about a debt hole.

Multifamily mortgage debt alone is up 1.9% to $1.02T—a $19.3B increaseMBA VP of CRE Research Jamie Woodwell says banks adding $32B in commercial loans made up an 85% chunk of the increase, National Mortgage News reports.

Commercial banks also hold the largest share of that debt at $1.04T, followed by CMBS, CDOs and other ABS at $520B, only half of bank holdings.

Behind that, federal agencies and GSEs hold $443B with life insurance companies rounding out the last $380B. [NMN]