U.S Mortgage Bankers Association (MBA) has released its latest Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.
According to this year’s survey, $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 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.