Magazine article Mortgage Banking

21 Percent Drop in commercial/MF Mortgage Volume Maturing This Year

Magazine article Mortgage Banking

21 Percent Drop in commercial/MF Mortgage Volume Maturing This Year

Article excerpt

The Mortgage Bankers Association (MBA) said $119.5 billion, or 8 percent, of the outstanding balance of commercial and multifamily (MF) mortgages held by non-bank lenders and investors will mature in 2013--a 21 percent decline from 2012.

MBA's 2012 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released Feb. 5, said $150.6 billion matured in 2012. And according to the report, 2013 loan maturities vary significantly by investor group; for example, just 5 percent ($16 billion) of the outstanding balance of multifamily and health-care mortgages held or guaranteed by Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and Ginnie Mae will mature in 2013.

The survey said life insurance companies will see 7 percent ($21.9 billion) of outstanding mortgage balances mature in 2013. Among loans held in commercial mortgage-backed securities (CMBS), 7 percent ($43.4 billion) will come due, while 21 percent ($38.1 billion) of commercial mortgages held by credit companies and other investors will mature in 2013.

"During the recession, and even in more recent years, approaching commercial and multifamily mortgage maturity volumes were referred to as akin to a 'ticking time bomb' that would over-whelm the real estate finance markets," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "Commercial and multifamily mortgages are generally long-term loans that span [up to] 10 years or longer, and each year since 2010 the volume of commercial and multifamily mortgages maturing in that year has declined. …

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