MBA: Commercial And Multifamily Delinquencies Fell To New Lows In Q3

Posted by Patrick Barnard on December 02, 2014 No Comments
Categories : Commercial Mortgage

The delinquency rate for loans held in commercial mortgage-backed securities that were 30-plus days overdue fell to 5.47% of all commercial loans in the third quarter, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.

The delinquency rate for loans that were 60-plus days past due decreased to 0.09% of all loans, according to the report.

For multifamily loans held or insured by Freddie Mac, the number of loans 60-plus days past due increased 0.01% to reach 0.03% of all loans.

For commercial and multifamily mortgages held in life company portfolios, the number of loans 60-plus days past due decreased 0.03% to reach 0.05% of all loans.

For loans held by FDIC-insured banks and thrifts, the number of loans 90-plus days past due decreased 0.12% to reach 1.28% of all loans – ‘a level last seen in early 2008 at the beginning of the credit crisis,’ according to Jamie Woodwell, vice president of commercial real estate research for the MBA.

‘Improving property fundamentals and values, as well as a strong finance market, are helping drive delinquency rates down across all investor groups,’ she says, adding that ‘the delinquency rate for multifamily loans held by banks has not been this low, 0.5%, since 2006.’

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