WASHINGTON, D.C. (February 18, 2019) — (RealEstateRama) — $110.5 billion of the $1.9 trillion (6 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2019, according to the Mortgage Bankers Association’s (MBA) Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released here today at the 2019 Commercial Real Estate Finance/Multifamily Housing Convention & Expo. Loan maturities this year will rise 8 percent from the $102.2 billion that matured in 2018.
“The upcoming roll of commercial and multifamily mortgage maturities is relatively stable, after seven years of instability,” said Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “Many commercial and multifamily mortgages have ten-year terms, and a decade ago, the Great Recession meant fewer new loans were being made. As a result, 2018 and 2019 loan maturity volumes have been smaller than would otherwise be the case. However, a sizable share of shorter term loans financed in the last few years have made up the difference.”
Added Woodwell, “From 2020 to 2024, $130 billion to just more than $150 billion of non-bank-held mortgages are set to mature each year. Multifamily loans will make up a larger share of non-bank maturities, and GSE loans a larger share of those.”
According to this year’s survey, loan maturities vary significantly by investor group. Just $11.4 billion (2 percent) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature this year. Life insurance companies will see $15.8 billion (3 percent) of their outstanding mortgage balances mature, and among loans held in CMBS, $45.9 billion (9 percent) will come due in 2019. Among commercial mortgages held by credit companies and other investors, $37.3 billion (21 percent) will mature.
The dollar figures reported are the unpaid principle balances as of December 31, 2018. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported in MBA’s survey. The survey covers $1.89 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, FHA, CMBS trusts and other non-bank lenders and investors. Banks and thrifts hold an additional $1.3 trillion in mortgages backed by income producing properties, which are not covered by this survey.
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