MBA: Commercial, Multifamily Mortgage Maturity Volume to Increase 48 Percent in 2020

by Alex Tostado

WASHINGTON, D.C. — An estimated $163.2 billion of the $2.2 trillion 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, according to the Mortgage Bankers Association’s (MBA) Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The results were released at the 2020 Commercial Real Estate Finance/Multifamily Housing Convention & Expo in San Diego. The four-day conference ends today.

“Commercial and multifamily mortgage maturities will rise this year from the low levels of the past two years,” says 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.”

Life insurance companies will see $24.8 billion, or 4 percent of their outstanding mortgage balances, mature this year. Among loans held in CMBS financing, $67.2 billion, or 11 percent, will come due. Only $11.9 billion (2 percent) of the outstanding balance of multifamily and healthcare mortgages held or guaranteed by Fannie Mae, Freddie Mac, Federal Housing Administration (FHA) and Ginnie Mae will mature in 2020. Commercial mortgages held by credit companies and other investors have the biggest share of financing maturing this year at 24 percent, or $59.3 billion.

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.

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