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Commercial Mortgages Grow

Commercial Mortgages Grow$3.466 trillion outstanding as of Dec. 31

March 19, 2009

By staff

An increase in commercial mortgages financed by commercial banks more than made up for a decline in loans financed through securitizations.During the fourth-quarter 2008, commercial mortgage debt outstanding increased $0.023 trillion from the third-quarter 2008, the Mortgage Bankers Association reported today. Based on the trade group’s previous report of $3.443 trillion in commercial mortgage debt outstanding as of Sept. 30, 2008, U.S. outstandings stood at around $3.466 trillion at the end of last year.

The findings were derived from the trade group’s analysis of Federal Reserve Board Flow of Funds data.

Outstanding commercial mortgages rose from $3.327 trillion on Dec. 31, 2007.

Multifamily loans accounted for $0.900 trillion of the latest total, up slightly from $0.895 trillion three months earlier.

Commercial mortgages held by commercial banks accounted for $1.550 trillion of the Dec. 31 total — though that figure includes commercial-and-industrial loans that have a piece of commercial property pledged as collateral. Three months earlier, commercial bank holdings were around $1.200 trillion. Nearly half of non-multifamily commercial mortgages were owner-occupied.

Loans held in commercial mortgage-backed securities, collateralized-debt obligations and asset-backed securities represented $0.746 trillion of the yearend total. CMBS holdings were $0.800 trillion at the end of September.

Life insurers held another $0.316 trillion in commercial real estate loans at the end of December, edging up from $0.315 trillion at the end of September.

Multifamily mortgages owned or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae were $0.338 trillion.

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