Ten Percent of Non-Bank Commercial/Multifamily Debt Will Mature in 2012, Down From 2011

Ten percent, or $150.6 billion, of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2012, a 3 percent decline from the $154.7 billion that matured in 2011.

Atlanta—Ten percent, or $150.6 billion, of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2012, a 3 percent decline from the $154.7 billion that matured in 2011, and an 18 percent decline from 2010 according to today’s release of the Mortgage Bankers Association’s (MBA) 2011 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.

The loan maturities vary significantly by investor group. Just 4 percent ($12.4 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 2012. Life insurance companies will see 6 percent ($19.6 billion) of their outstanding mortgage balances mature in 2012. Among loans held in CMBS, 11 percent ($72.0 billion) will come due and twenty-nine percent ($46.6 billion) of commercial mortgages held by credit companies and other investors will mature in 2012.

MBA’s 2011 survey collected information directly from servicers on the years of maturity of $1.46 trillion in outstanding non-bank commercial/multifamily mortgages. Only small shares of the commercial and multifamily mortgage debt held by life insurance companies, Fannie Mae, Freddie Mac or FHA will be coming due in 2012 or 2013. Greater shares of mortgages held in commercial mortgage-backed securities (CMBS) and by credit companies, warehouse facilities and other investors will mature in 2012 and 2013.

The dollar figures reported are the unpaid principle balances as of December 31, 2011. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. This survey covers $1.46 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 $793 billion in mortgages backed by income producing properties which are not covered by this survey.