ATLANTA — The Mortgage Bankers Association (MBA) reports that 10 percent of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2012, according to its annual Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The value of the maturities is estimated at $150.6 billion, according to MBA.
The survey’s findings come in the midst of the four-day MBA CREF 2012 Conference, being held at the Marriott Marquis in downtown Atlanta.
The MBA survey covers $1.46 trillion of mortgages held by life companies, Fannie Mae, Freddie Mac, Federal Housing Authority (FHA), CMBS trusts and other non-bank entities. The findings follow the downward trend of non-bank real estate commercial loan maturities since 2010. The $150.6 billion in maturities is down 3 percent from 2011 and 18 percent from 2010.
“The volume of commercial and multifamily mortgages coming due has declined over the last 2 years, from $184 billion in 2010, to $155 billion in 2011, to $150.6 billion this year,” says Jamie Woodwell, MBA vice president of commercial real estate research, in a prepared statement. “That survey, and each one since, has shown that the volume of commercial and multifamily mortgages maturing each year represents only a small portion of the commercial mortgage universe.”
Piggybacking on that sentiment, loans maturing in 2012 either make up a minimal amount or significant volume, based on the investor group. For instance, only 4 percent (approximately $12.4 billion) of commercial or multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA or Ginnie Mae will come due in 2012. On the other end of the spectrum, 29 percent (approximately $46.6 billion) of mortgages held by credit companies and other investors will mature in 2012.
In between the two investor groups are life insurance companies, which have 6 percent (approximately $19.6 billion) of their outstanding mortgages maturing this year. Additionally, 11 percent ($72 billion) of loans held in CMBS will be due.
FOURTH QUARTER 2011 SEES 13 PERCENT HIKE IN ORIGINATIONS
MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations found that loan originations were up 13 percent in the fourth quarter of 2011 compared to fourth quarter 2010. However, the amount was a 7 percent drop from the third quarter 2011.
“MBA’s Commercial/Multifamily Mortgage Bankers Origination Index hit record levels for life insurance companies in the second and third quarters of 2011,” says Woodwell. “In the fourth quarter, multifamily originations for Fannie Mae and Freddie Mac hit a new all-time high.”
The increase in originations compared to fourth quarter 2010 was driven by increases in multifamily and industrial loan originations. Industrial originations were up 43 percent and multifamily originations were up 31 percent. The quarterly survey also revealed that loans for commercial bank portfolios saw a 122 percent hike and GSEs experienced a 17 percent increase.
The survey also discovered decreases in loan origination activity by property or investor type. Originations for retail were down 8 percent, health care decreased by 24 percent, office decreased by 29 percent and hospitality was down 44 percent.
Among investors, there was a 13 percent decrease in loans for life insurance companies and a 50 percent decrease in loans for CMBS conduits.
Woodwell explains that, “The CMBS market continued to be held back by broader capital markets uncertainty during the past year.”
— John Nelson