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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 64 March 2024 J O U R N A L market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity." Lenders repossessed 3,945 properties through completed foreclosures (REOs) in January 2024, up 1% from a year ago and up 13% from last month—the first month-over-month increase in complet- ed foreclosures since July 2023. States that had at least 50 or more REOs and that saw the greatest monthly increase in January 2024 included: Michi- gan (up 200%); Minnesota (up 47%); California (up 43%); Pennsylvania (up 36%); and Missouri (up 34%). Looking at foreclosure rates on a na- tional scale, one in every 4,236 dwellings had a foreclosure filing against it. States with the highest foreclosure rates were: » Delaware (one in every 2,269 housing units with a foreclosure filing) » Nevada (one in every 2,272) » Indiana (one in every 2,499) » Maryland (one in every 2,588) » New Jersey (one in every 2,647) Finally, foreclosure starts increased on a monthly and yearly basis as lenders started the foreclosure process on 21,770 dwellings in January, up 6% from the previous month and up 5% from a year earlier. Those states that saw the greatest number of foreclo- sures starts in January 2024 included: » California (2,719 foreclosure starts) » Texas (2,613 starts) » Florida (2,330 starts) » New York (1,341 starts) » Illinois (913 starts) BILLIONS OF COMMERCIAL/ MULTIFAMILY MORTGAGES TO MATURE IN 2024 A ccording to the Mortgage Bank- ers Association's 2023 Commer- cial Real Estate Survey of Loan Maturity Volumes, some 20%—an esti- mated $929 billion—of the $4.7 trillion of outstanding commercial mortgages held by lenders and investors will mature in 2024, representing a 28% increase from the $729 billion that matured in 2023. "The lack of transactions and other activity last year, coupled with built- in extension options and lender and servicer flexibility, has meant that many loans that were set to mature in 2023 have been extended or otherwise modified and will now mature in 2024, 2026, 2028, or in other coming years," said Jamie Woodwell, Head of Commercial Real Estate Research at MBA. "These exten- sions and modifications have pushed the amount of CRE mortgages maturing this year from $659 billion to $929 billion." Woodwell continued, "Commercial mortgages tend to be relatively long-lived, spreading maturities out over several years. Volatility and uncertainty around interest rates, a lack of clarity on property values, and questions about some property fundamentals have suppressed sales and financing transactions. This year's matur- ities, coupled with greater clarity in those and other areas, should begin to break the logjam in the markets." The loan maturities vary significantly by investor and property type groups. The remaining balance of multifamily and healthcare mortgages held or in- sured by Fannie Mae, Freddie Mac, FHA, and Ginnie Mae will mature in 2024 by just $28 billion (3%) of the total. In 2024, $59 billion (8%) of the existing mortgage balances held by life insurance compa- nies will mature. On the other hand, the number of mortgages that are expected to mature in 2024 are as follows: an estimated $441 billion (25%) of the outstanding balance of mortgages held by depositories; roughly $234 billion (31%) in CMBS, CLOs, or other ABS; and approximately $168 billion (36%) of the mortgages owned by credit organi- zations, other lenders, or warehouses. In 2024, 12% of mortgages secured by multifamily properties, 17% by retail properties, and 18% by healthcare properties would mature according to the kind of property. A quarter of the loans secured by office buildings, as well as two-thirds of the industrial and three-quarters of the hotel/motel loans, are scheduled to mature in 2024. The listed dollar amounts represent the principal sums that were outstanding as of December 31, 2023. The amounts at maturity will typically be lower than those shown here because most loans pay down the principle. "The lack of transactions and other activity last year, coupled with built- in extension options and lender and servicer flexibility, has meant that many loans that were set to mature in 2023 have been extended or otherwise modified and will now mature in 2024, 2026, 2028, or in other coming years." —Jamie Woodwell, Head of Commercial Real Estate Research, MBA