Skip to main content

MBA finds only 13 percent of non-bank commercial/multifamily mortgage debt to mature in 2010

NationalMortgageProfessional.com
Feb 03, 2010

The Mortgage Bankers Association (MBA) has released the results of its 2009 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey indicates that the volume of commercial and multifamily mortgage debt maturing in 2010 and 2011 is relatively low. Of the $1.45 trillion balance of outstanding mortgages held by non-bank investors, only 13 percent of the total ($183.9 billion) will mature in 2010 and seven percent ($99.8 billion) in 2011. The survey also found that maturities vary considerably by the type of investor holding the loan. "Commercial and multifamily mortgages tend to be long-term loans, often for 10 years or more," said Jamie Woodwell, MBA's vice president of commercial real estate research. "The fact that a disproportionate share of commercial and multifamily mortgages were made in 2005, 2006 and 2007 means that for most investor groups, only a fraction of the balance will be maturing in the next couple of years." "Investor groups' maturity schedules are generally designed to match their liabilities," added Woodwell. "Many maturing mortgages have built-in extension options, and most investor groups and servicers have considerable discretion in how they deal with loans that may not be able to immediately refinance at maturity." MBA's 2009 survey collected information directly from servicers on the maturity years of more than $1.5 trillion in outstanding mortgages, including $1.45 trillion of non-bank commercial/multifamily holdings. Only small shares of the commercial and multifamily mortgage debt held by life insurance companies, Fannie Mae, Freddie Mac or FHA, or in fixed-rate commercial mortgage-backed securities (CMBS) will be coming due in 2010 or 2011. Greater shares of mortgages held in short-term and floating-rate commercial mortgage-backed securities (CMBS) and by credit companies, warehouse facilities and other investors will mature in 2010 and 2011. Based on MBA's survey, of the $1.45 trillion balance of outstanding mortgages held by non-bank investors, 13 percent of the total ($183.9 billion) will mature in 2010 and 7 percent ($99.8 billion) in 2011. Commercial/multifamily mortgage maturities vary significantly by investor group. Just 2 percent ($4 billion) of the outstanding balance of multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2010. Life insurance companies will see 7 percent ($17.5 billion) of their outstanding mortgage balances mature in 2010. Among loans held in CMBS, 12 percent will come due in 2010, including 7 percent of the $650 billion of loans in fixed-rate conduit CMBS and 72 percent of the $54 billion of loans in floating rate and large-borrower CMBS. Thirty-two percent ($69 billion) of commercial mortgages held by credit companies and other investors will mature in 2010. The bank lending market tends to be distinct from the more institutional commercial/multifamily mortgage market represented by life insurance companies, Fannie Mae, Freddie Mac, FHA and the CMBS market. The large number and diversity of banks and thrifts also means that while the report presents information on more than $100 billion of commercial and multifamily mortgages held by banks and thrifts, those results are not believed to be generalizable. The dollar figures reported are the unpaid principle balances as of December 31, 2009. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. For more information, visit www.mortgagebankers.org.
Published
Feb 03, 2010
Evergrande Steadily Repays Debt While Taking On New Risk

Evergrande Chairman Hui Ka Yan has ambitious plans, signaling last Friday that the firm wants to move away from housing and focus on making electric cars. 

Industry News
Oct 26, 2021
Planet Home Lending Reports Q3 Gains In Asset Management, Servicing And Originations

The Planet Home Financial Group, LLC, parent company of Planet Home Lending, LLC and Planet Management Group, LLC reported steady growth across its servicing, correspondent and private-client channels.

Industry News
Oct 26, 2021
CFPB, DOJ And OCC Hit Trustmark National Bank For 'Deliberate' Redlining

The Consumer Financial Protection Bureau and U.S. Department of Justice, in conjunction with the Office of the Comptroller of the Currency are taking action against Trustmark National Bank for alleged redlining violations.

Industry News
Oct 25, 2021
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021