Billions Worth of Loans To Mature in '09

SAN DIEGO-The Mortgage Bankers Association released the results of its new Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes at its conference here this week 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 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. Approximately $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 VP 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.”