$171 billion of non-bank commercial/multifamily mortgages maturing in 2009MortgagePress.comMortgage Bankers Association, Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, statistics, CMBS
The Mortgage Bankers Association (MBA) has released the results
of its new Commercial Real Estate/Multifamily Survey of Loan
Maturity Volumes that reports $171 billion of
commercial/multifamily mortgages held by non-bank lenders and
investors will mature in 2009. According to the survey, the volume
of loans maturing varies considerably by the type of investor
holding the loan.
Short-term floating-rate mortgages in commercial mortgage-backed
securities (CMBS) and mortgages held by credit companies, warehouse
facilities and other investors are more likely to mature in 2009
and 2010 than are fixed-rate CMBS mortgages, mortgages held by life
insurance companies or multifamily mortgages held or guaranteed by
Fannie Mae, Freddie Mac or FHA. $120 billion of non-bank
commercial/multifamily mortgages are scheduled to mature 2010.
"Substantial concerns have been raised about the volume of
mortgages maturing in the face of the current credit crunch," said
Jamie Woodwell, MBA's vice president of commercial real estate
research. "This study shows that while the dollar volume of
maturing non-bank mortgages represents only one-tenth of the total
outstanding balance, it is not evenly spread across investor and
lender groups. While some parts of that system - such as
floating-rate CMBS and credit companies, warehouse facilities and
other investors - face a significant volume of near-term loan
maturities, others - including fixed-rate conduit CMBS, life
insurance companies, Fannie Mae, Freddie Mac and FHA--do not."
"Across all these investor groups, commercial/multifamily
lenders and servicers have a wide variety of tools to help them
deal with maturing mortgages, which should mitigate - but not
eliminate - the impact of maturities in 2009," added Woodwell. "To
the degree mortgages are extended into out years, however, there is
an increased consequence should the markets not be functioning in
2010, 2011 or beyond."
MBA's survey on commercial/multifamily loan maturities collected
information on the maturity dates of more than $1.7 trillion in
outstanding mortgages, including $1.55 trillion of non-bank
commercial/multifamily holdings.
Investor groups' maturity schedules are generally designed to
their match liabilities, and most investor groups have considerable
discretion in how they deal with loans that may not be able to
immediately refinance at maturity. Of the total non-bank holdings
of commercial/multifamily mortgages coming due in 2009, 52.8
percent is in CMBS, CDOs or other ABS, and an additional 33.6
percent is held by credit companies, warehouse facilities or other
investors. Only 9.8 percent of the non-bank mortgages maturing in
2009 are held by life insurance companies, and 3.8 percent are held
or guaranteed by Fannie Mae, Freddie Mac or FHA.
Even within an individual investor group there are significant
variations. It is important to note that a significant share of
CMBS loans maturing in the next two years are floating-rate loans,
which tend to have larger balances and to be shorter-term in
nature. According to data from RBS Greenwich Capital, $31 billion
of the current balance of CMBS loans maturing in 2009 is in
floating rate loans. These floating-rate loans tend to have
extension options built into them, and according to RBS, only $1.9
billion of the floating rate loans maturing in 2009 have exhausted
these options. An additional $19 billion of the balance is
fixed-rate loans in conduit/fusion CMBS deals. The CMBS, CDO and
other ABS loans categorized in the MBA report also includes
B-notes, privately-issued CMBS, mezzanine and other loans that are
related to the CMBS market but may not be a part of a publicly
issued commercial mortgage-backed security.
For more information, visit www.mortgagebankers.org.
