Commercial Mortgage Loans Went Up in ’08 (Will Wonders Never Cease?)

According to a recently released report by the MBA, (Mortgage Bankers Association) total commercial and multi-family mortgage debt was actually increasing as-of the end of ’08. Commercial real estate loan balances ended 2008 at $3.5 trillion, up 5% over ’07.

 

Among the many reports and predictions of impending doom in commercial mortgages, this news seems counterintuitive. We are told that things are getting worse and lenders are not lending yet commercial mortgages increase more than $160 billion year over year.

 

Much of the increase is in the “commercial / industrial” category. These are business loans with a commercial real estate component.

 

Who’s lending all this money and holding all this paper? Commercial banks own 44%, 21% is tied up in various forms of CDOs (collateralized debt obligations), life insurance companies own about 9% and other savings institutions are in for 5.5%

 

Detail orientated readers can view the entire MBA report here.

 

 

Commercial Mortgage Loans; Private and Institutionally Funded – Loans From $1MM+ for Purchase and Refinance of Commercial Real estate – MasterPlan Capital LLCEasy Application – Fast Professional Service

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