Multifamily mortgage debt outstanding (MDO) continues to increasing, growing by $9.0 billion in 1Q 2014, the biggest first-quarter rise since 2008. Similarly, over the last 12 months combined (TTM, or trailing 12 months), MDO grew by $42.3 billion, also the biggest increase since 2008. As the volume has increased, there has been a significant shift among multifamily debt capital providers.
Of that $42.3 billion, depository institutions, or banks, were responsible for $35.8 billion, or 84.6 percent-the largest such share for depositories in almost 30 years.
By contrast, MDO from Fannie Mae and Freddie Mac declined $1.7 billion over the past year, only the second such decrease since 1993 (when Freddie temporarily exited the multifamily market). Even so, the GSE share of all multifamily MDO (32.7 percent) remained a bit higher than the depositories' share (31.8 percent) in the first quarter.
For the sixth straight quarter, Ginnie Mae provided more than $10 billion in mortgage credit (TTM), something it had never done before.
At the same time, commercial mortgage-backed securities (CMBS) net credit declined again, the 23rd consecutive TTM decrease. Life insurance company net mortgage credit increased further to a modest $3.1 billion.
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