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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 48 July 2025 J O U R N A L Default Servicing BANKS AND CMBS LEAD SURGE IN Q1 COMMERCIAL‑ MULTIFAMILY DEBT A ccording to the most recent Commercial/Multifamily Mortgage Debt Outstanding quarterly report from the Mortgage Bankers Association (MBA), the amount of outstanding commercial/multifamily mortgage debt rose by approximately $46.8 billion (1%) in Q1 2025. By the conclusion of Q1, the total amount of outstanding commercial and multifamily mortgage debt had increased to $4.81 trillion. From Q4 2024, multifam- ily mortgage debt alone climbed $19.9 billion (0.9%) to $2.16 trillion. With $1.8 trillion in commercial/mul- tifamily mortgages, commercial banks still hold the greatest stake (38%). At $1.07 trillion, agency and GSE portfolios and MBS constitute the second-largest share of commercial/multifamily mortgages (22%). An estimated $752 billion (16%) is held by life insurance firms, whereas $642 billion (13%) is held by CMBS, CDO, and other ABS issuers. CMBS, CDO, and other ABS issues are bought and held by numerous banks, life insurance compa- nies, and the GSEs.' U.S. Highlights—Multifamily Mortgage Debt Outstanding (Q1 2025) • In Q1 2025—narrowing it down to multifamily mortgages—agency and GSE portfolios and MBS made up half of all outstanding multifamily debt ($1.07 billion) • Banks and thrifts came in second with $639 billion (30%) • Life insurance companies followed with $242 billion (11%) • Next, state and local government totaled $94 billion (4%) • CMBS, CDO, and other ABS issues rounded out the list with $62 billion (3%) "Despite lower origination volumes, the overall level of commercial and multifamily mortgage debt rose in the first quarter of 2025," said Reggie Booker, MBA's Associate VP of Commercial Real Estate Research. "This increase reflects the extended duration of outstanding loans and the continued appetite for real estate investment across key investor groups." Revolving Trends: Commercial/ Multifamily Mortgage Debt Outstanding The biggest dollar gains in Q1 were made by CMBS, CDO, and other ABS issues in their commercial/multifamily mortgage loan holdings, which increased by $16.2 billion (2.6%). Their holdings grew by $13.1 billion (0.7%) for banks and thrifts, $7.5 billion (0.7%) for agency and GSE portfolios and MBS, and $6.1 billion (0.8%) for life insurance firms. Further, the biggest percentage gain in commercial/multifamily mortgage holdings was 4% for REITs. On the other hand, assets held by private pension funds fell by 10.6%.