Commercial Lending

MBA: Commercial, Multifamily Mortgage Maturity Volumes to Rise 8% in 2019

Loan maturities this year will rise 8 percent from the $102.2 billion that matured in 2018.

Fully $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, according to the Commercial Real Estate-Multifamily Survey of Loan Maturity Volumes from the Mortgage Bankers Association.

“The upcoming roll of commercial and multifamily mortgage maturities is relatively stable, after seven years of instability,” said Jamie Woodwell, vice president for commercial real estate research of MBA. “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.”

From 2020 to 2024, $130 billion to just more than $150-billion of non-bank-held mortgages will mature each year. Multifamily loans will make up a larger share of non-bank maturities, and government-sponsored enterprise loans will be 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.

The dollar figures reported are the unpaid principle balances as of Dec. 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, Federal Housing Administration, 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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