Commercial and Multifamily Mortgage Maturity Volumes to Increase 36 Percent in 2021
WASHINGTON, D.C. (February 9, 2021) -$222.5 billion of the $2.3 trillion (10 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2021, a 36 percent increase from the $163.2 billion that matured in 2020. That is according to today's annual release of the Mortgage Bankers Association's Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.
"Commercial and multifamily mortgage maturities among non-banks lenders are the highest since at least 2009," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Many life company, GSE and FHA loans that would have been coming due this year were instead refinanced or prepaid early. Those declines have been more than made up for by shorter-term loans with 2021 maturity dates made by CMBS and investor-driven lenders."
Woodwell continued, "The COVID-19 pandemic has also marginally affected the level of maturities this year. As of the end of 2020, 1.5 percent of the balance of outstanding commercial and multifamily mortgages had already matured but remained outstanding. By contrast, that figure stood at 0.8% at the end of 2019, with the increase most likely driven by loans that faced challenges being refinanced given the COVID-19 pandemic. Between 2009 and 2012 the comparable figure ranged from 2.25% and 2.75%."
The loan maturities vary significantly by investor group. Just $10.1 billion (1 percent) 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 2021. Life insurance companies will see $39.8 billion (6 percent) of their outstanding mortgage balances mature, and among loans held in CMBS, $100.0 billion (16 percent) will come due. Among commercial mortgages held by credit companies and other investors, $72.6 billion (30 percent) will mature this year.
The dollar figures reported are the unpaid principal balances as of December 31, 2020. Because most loans pay down principal, the balances at the time of maturity will generally be lower than those reported here. This survey covers $2.32 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 $1.5 trillion in mortgages backed by income-producing properties, which are not covered by this survey.
To learn more or to purchase a copy of the report, please visit: www.mba.org/loanmaturityvolumes