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Delinquency rates declined for commercial and multifamily mortgages held by banks and in commercial mortgage-backed securities (CMBS) during the third quarter, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report. The third-quarter delinquency rate for commercial and multifamily mortgages held by banks and thrifts was 2.83 percentage points lower than the series high of 6.58%, reached in the second quarter 1991.

The delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.34 percentage points lower than the series high (7.53%, reached during the second quarter of 1992); the rate for multifamily loans held by Fannie Mae was 3.05 percentage points below the series high (3.62%, reached during the fourth quarter of 1991); and the rate for multifamily loans held by Freddie Mac was 6.48 percentage points lower than the series high (6.81%, reached in the fourth quarter of 1992). The rate for loans held in CMBS was 0.10 percentage points below the series high (9.02%, reached in the second quarter of 2011).

Between the second and third quarters of 2011, the 90-plus-day delinquency rate for loans held by banks and thrifts decreased 0.19 percentage points to 3.75%. The 60-plus-day delinquency rate for loans held in life company portfolios increased 0.07 percentage points to 0.19%.

However, the 60-plus day delinquency rate for multifamily loans held or insured by Fannie Mae increased 0.11 percentage points to 0.57%, while the 60-plus day delinquency rate for multifamily loans held or insured by Freddie Mac increased 0.02 percentage points to 0.33%. The 30-plus day delinquency rate for loans held in CMBS decreased 0.10 percentage points to 8.92%.

"There were modest changes in commercial/multifamily delinquency rates during the third quarter," says Jamie Woodwell, MBA's vice president of commercial real estate research. "The delinquency rates for loans held by life insurance companies, Fannie Mae and Freddie Mac each ticked up slightly in the quarter, but remained at relatively low overall levels; delinquency rates for bank-held loans continued to decline from their cycle highs; and delinquency rates for loans held in CMBS fell slightly as loans made during the first half of the year were added to the base."


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