MBA: 2019 Commercial and Multifamily Mortgage Maturity Volumes to Increase 8 Percent

SAN DIEGO–The Mortgage Bankers Association said $110.5 billion (6 percent) of the $1.9 trillion in outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2019.

The MBA Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released here at the MBA 2019 Commercial Real Estate Finance/Multifamily Housing Convention & Expo, said 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 MBA Vice President for Commercial Real Estate Research Jamie Woodwell. “Many commercial and multifamily mortgages have 10-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.”

Woodwell said looking ahead, between 2020 to 2024, $130-$150 billion of non-bank-held mortgages are set to mature per year. “Multifamily loans will make up a larger share of non-bank maturities, and GSE loans a larger share of those,” he said.

MBA said loan maturities vary significantly by investor group this year. 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 commercial mortgage-backed securities, $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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