SAN DIEGO (February 9, 2020) — $163.2 billion of the $2.2 trillion (7 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2020, a 48 percent increase from the $110.5 billion that matured in 2019. That is according to the Mortgage Bankers Association’s (MBA) Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released here today at the 2020 Commercial Real Estate Finance/Multifamily Housing Convention & Expo.
“Commercial and multifamily mortgage maturities will rise this year from the low levels of the last two years,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Given the long-term nature of many commercial mortgages, maturities remain muted, with just 7 percent of the total balance of non-bank-held mortgages maturing in 2020. This is particularly true for multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mac and FHA, of which less than 2 percent of the outstanding balance will mature. Loans made by investor-driven lenders, such as mortgage REITs, debt funds and credit companies, tend to be shorter-term, which is why nearly one-quarter of the outstanding balance of those loans will mature in 2020.”
Added Woodwell, “This year marks the beginning of a ‘return to normalcy’ after the so-called ‘wall of maturities’ in 2016 and 2017, and the ‘trough of maturities’ in 2018 and 2019.”
The loan maturities vary significantly by investor group. Only $11.9 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 2020. Life insurance companies will see $24.8 billion (4 percent) of their outstanding mortgage balances mature, and among loans held in CMBS, $67.2 billion (11 percent) will come due. Among commercial mortgages held by credit companies and other investors, $59.3 billion (24 percent) will mature this year.
The dollar figures reported are the unpaid principle balances as of December 31, 2019. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. MBA’s survey covers $2.19 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 $1.4 trillion in mortgages backed by income-producing properties, which are not covered by this survey.