The level of commercial/multifamily mortgage debt outstanding decreased in the first quarter, to $3.31 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data.
Declines were driven by drops in commercial and multifamily mortgages held in CMBS and construction loans held by banks and thrifts.
The $3.31 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $31 billion or 0.9 percent from the fourth quarter of 2009. Multifamily mortgage debt outstanding rose to $852 billion, an increase of $3 billion or 0.4 percent from the fourth quarter of 2009.
“Low levels of commercial mortgage borrowing mean that property investors are paying off and paying down more in mortgages than they are taking out,” said Jamie Woodwell MBA’s Vice President of Commercial Real Estate Research. “The balance of construction loans at banks, and commercial and multifamily mortgages held in CMBS and by life insurance companies, saw the largest declines. The balance of multifamily mortgages backed by Fannie Mae, Freddie Mac and FHA saw the largest increase.”
The Federal Reserve Flow of Funds data summarizes the holding of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (included under Life Insurance Companies in this data) and in CMBS, collateralized debt obligations (CDOs) and other asset backed securities (ABS) for which the security issuers and trustees hold the note.
Showing posts with label Commercial Loans. Show all posts
Showing posts with label Commercial Loans. Show all posts
Thursday, September 2, 2010
Second Quarter 2010 Commercial/Multifamily Mortgage Originations Increase
Washington (28 Јули 2010 г.) -- The second quarter 2010 commercial and multifamily mortgage loan originations were one cent higher than during the same period last year and 35 percent higher than during the first quarter, according to mortgage Bankers Association (MBA) Quarterly Survey of Commercial / Multifamily Mortgage Bankers Originations.
"Borrowing remains light as several commercial property owners to sell or refinance their properties, unless they have to," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Life insurance companies, CMBS conduits and other back on the market and loans, and rates are very attractive levels. However, the low amounts of property sales, property values are depressed, stressed cash flow and modest loan maturities are all keeping borrowing a minimum. "
Among the key conclusions in the report are:
• Second-quarter commercial and multifamily mortgage originations were flat with the level of last year and increased 35 percent
the first quarter volumes.
• Originations life insurance companies and CMBS conduits are drastically increased percentage basis.
• Originations for Fannie Mae and Freddie Mac fell by more than half of Q2 2009 levels.
• The absolute level, volumes remain low.
"Borrowing remains light as several commercial property owners to sell or refinance their properties, unless they have to," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Life insurance companies, CMBS conduits and other back on the market and loans, and rates are very attractive levels. However, the low amounts of property sales, property values are depressed, stressed cash flow and modest loan maturities are all keeping borrowing a minimum. "
Among the key conclusions in the report are:
• Second-quarter commercial and multifamily mortgage originations were flat with the level of last year and increased 35 percent
the first quarter volumes.
• Originations life insurance companies and CMBS conduits are drastically increased percentage basis.
• Originations for Fannie Mae and Freddie Mac fell by more than half of Q2 2009 levels.
• The absolute level, volumes remain low.
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