MBA Projects 2018 Maturing Commercial/Multifamily Mortgage Volume to Drop 42%

SAN DIEGO–The Mortgage Bankers Association said 6 percent, or $102.2 billion, of the $1.8 trillion outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2018, a 42 percent decrease from $175.9 billion in 2017.

“2017 marked the official end of the so-called ‘wall of maturities,'” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Because many commercial and multifamily mortgages are 10-year loans, and few loans were made in 2008 during the onset of the credit crunch, mortgage maturities will be 42 percent lower in 2018.”

Woodwell added the strong market has also meant that many loans that were slotted to mature in coming years have already been refinanced, with maturities pushed further out. “As a result, commercial and multifamily mortgage maturities will slowly climb over the coming years,” he said.

The MBA 2017 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes said loan maturities vary significantly by investor group. Just $13.3 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 in 2018. Life insurance companies will see $18.8 billion (4 percent) of their outstanding mortgage balances mature. Among loans held in commercial mortgage-backed securities, $34.0 billion (7 percent) will come due in 2018. Among commercial mortgages held by credit companies and other investors, $36.2 billion (22 percent) will mature in 2018.

Dollar figures reported are the unpaid principle balances as of December 31, 2017. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here.

The survey covers $1.76 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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