IFGL - Who's On The Hook For Multifamily CRE Mortgages? #1 Taxpayers Far Ahead Of #2 Banks
2024-03-19 15:51:00 ET
Summary
- The multifamily segment of Commercial Real Estate – apartments – is holding up better than office, retail (the Brick-and-Mortar Meltdown since 2017), and lodging, though it’s cracking too with some spectacular defaults over the past 12 months or so.
- Total mortgages backed by multifamily properties rose by 4.4% year-over-year in Q4, or by $88 billion, to $2.09 trillion, according to the Mortgage Bankers Association, based on its own data, and on data from the Federal Reserve, Trepp, and the FDIC.
- The banking system overall isn’t fundamentally threatened by bad multifamily loan.
The multifamily segment of Commercial Real Estate - apartments - is holding up better than office, retail (the Brick-and-Mortar Meltdown since 2017), and lodging, though it's cracking too with some spectacular defaults over the past 12 months or so. Yet, US banks and thrifts and foreign banks hold only a small-ish portion....
Who's On The Hook For Multifamily CRE Mortgages? #1 Taxpayers, Far Ahead Of #2 Banks