MBA: Commercial/Multifamily Maturing Mortgage Volume Up 51%

ORLANDO–11 percent, or $183.3 billion out of $1.7 trillion in outstanding commercial and multifamily mortgages held by non-bank lenders and investors, will mature in 2016, a 51 percent increase from $121.0 billion that matured in 2015, the Mortgage Bankers Association reported.  

The MBA 2015 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes said maturities could grow to $208 billion in 2017.  

“More commercial and multifamily mortgages are maturing in 2016 and 2017 than have the last few years, but early refinancings and pay-downs are chipping away at those totals,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “The bottom line is that the ‘wall of maturities’ that has been the focus of concern the last many years is receding.”  

Woodwell noted the 2016 figure could have been higher; the 2015 survey tracked $225 billion in commercial and multifamily mortgages set to mature in 2016. This year’s survey found that 2016 maturities had dropped by 18 percent, to $183 billion, as loans prepaid and paid-down, the same amount that matured in 2010.   

The survey said loan maturities vary significantly by investor group. For example, just $11.4 billion (2 percent) of outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2016. Life insurance companies will see $26.6 billion (7 percent) of their outstanding mortgage balances mature this year. Among loans held in commercial mortgage-backed securities, $114.6 billion (19 percent) will come due in 2016. Among commercial mortgages held by credit companies and other investors, $30.7 billion (18 percent) will mature this year.  

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

This survey covers $1.69 trillion in 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 $1.0 trillion in mortgages backed by income producing properties which are not covered by this survey.  

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