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MBA Survey: 21% Decline in 2013 Maturing CRE/Multifamily Mortage Balances

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

The MBA 2012 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released this morning at the MBA Commercial Real Estate Finance/Multifamily Housing Convention & Expo, said $150.6 billion matured in 2012. It said 2013 loan maturities vary significantly by investor group, noting, for example, that just 5 percent ($16.0 billion) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, 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, 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 overwhelm 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.”

Woodwell said the volume of loans maturing in 2013 and 2014 will mark “cycle lows” for loan maturities, each representing less than 8 percent of the outstanding balance of loans. “In reality, the relatively long-term nature of commercial and multifamily mortgage debt helped the market weather the recession and its slow recovery,” he said.
The MBA 2012 survey collected information directly from servicers on years of maturity of $1.51 trillion in outstanding non-bank-held commercial/multifamily mortgages. Compared to 2012 loan maturities, the volume of loans maturing in 2013 will increase for life insurance companies and for Fannie Mae, Freddie Mac and FHA, and will decrease for CMBS and for credit companies and other investors.
Dollar figures reported are the unpaid principal balances as of December 31. Because most loans pay down principal, the balances at the time of maturity will generally be lower than those reported here. This survey covers $1.51 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 $819 billion in mortgages backed by income-producing properties not covered by this survey.
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