Volume of Commercial and Multifamily Mortgages Maturing Drops 42 percent in 2018

Volume of Commercial and Multifamily Mortgages Maturing Drops 42 percent in 2018

SAN DIEGO, CA (February 15, 2018) – (RealEstateRama) — According to the Mortgage Bankers Association’s 2017 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, 6 percent, or $102.2 billion, of the $1.8 trillion outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2018, a 42 percent decrease from the $175.9 billion that matured in 2017.

“2017 marked the official end of the so-called ‘wall of maturities’,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “Because many commercial and multifamily mortgages are ten-year loans, and few loans were made in 2008 during the onset of the credit crunch, mortgage maturities will be 42 percent lower in 2018.  The strong market has also meant that many loans that were slotted to mature in coming years have already been refinanced, with maturities pushed further out.  As a result, commercial and multifamily mortgage maturities will slowly climb over the coming years.”

The loan maturities vary significantly by investor group.  Just $13.3 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 2018.  Life insurance companies will see $18.8 billion (4 percent) of their outstanding mortgage balances mature in 2018.  Among loans held in CMBS, $34.0 billion (7 percent) will come due in 2018.  Among commercial mortgages held by credit companies and other investors, $36.2 billion (22 percent) will mature in 2018.

The dollar figures reported are the unpaid principle balances as of December 31, 2017.  Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here.  This survey covers $1.76 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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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

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Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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