CRE Debt Outstanding Approaches $3 Trillion.

Washington -- Commercial and multifamily mortgage debt outstanding went up to $2.95 trillion at the end of 2006, a 12.7% increase from the end of 2006, the Mortgage Bankers Association reports. The mortgage bankers trade group said, based on an analysis of Federal Reserve data, that in the fourth quarter alone, commercial and multifamily mortgage debt outstanding increased by $99 billion, or 3.5%. Multifamily debt outstanding stood at $731 billion at the end of 2006, an increase of 7.5% over the year, and $15 billion, or 2.1%, in the fourth quarter alone.

In percentage terms, real estate investment trust holdings of commercial and multifamily mortgage debt outstanding rose the most, at 36%, last year, while pension fund holdings declined the most.

Jamie Woodwell, MBA's senior director for commercial/multifamily research, said, "The most recent Federal Reserve Beige Book characterized commercial real estate markets as strong, solid and firming. We also see low delinquencies and other signs of mortgage performance continuing to show strength."

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with almost $1.3 trillion, or 44% of the total (commercial bank holdings also include "commercial and industrial loans" on which commercial property is the collateral.

Commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities pools are the second largest holders of commercial/multifamily mortgages, with $630 billion, or 21% of the total. Life insurance companies hold $284 billion, or 10 % of ...