MBA: Commercial and Multifamily Delinquency Rates Continue To Drop

Posted by Patrick Barnard on December 04, 2013 No Comments
Categories : Commercial Mortgage

Delinquency rates for commercial and multifamily mortgage loans continued to decline in the third quarter, driven mainly by improvements in the economy, as well as rising property values, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.

The report looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and government-sponsored enterprises Fannie Mae and Freddie Mac. Together these groups hold more than 80% of commercial/multifamily mortgage debt outstanding.

For the third quarter, the 60-plus-day delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios decreased 0.02 percentage points to 0.06%.

The 60-plus-day delinquency rate for multifamily loans held or insured by Freddie Mac decreased 0.04 percentage points to 0.05%.

The 60-plus-day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.10 percentage points to 0.18%.

The 90-plus-day delinquency rate for loans held by FDIC-insured banks and thrifts decreased 0.23 percentage points to 1.95%.

The 30-plus-day delinquency rate for loans held in CMBS decreased 0.30 percentage points to 7.51%.Â

‘Commercial and multifamily mortgage performance continues to reflect overall economic gains,’ says Jamie Woodwell, vice president of commercial real estate research for the MBA, in a statement. ‘Improvements in underlying property performance and property values, and the continued availability of commercial and multifamily mortgage financing, led to declines in delinquency rates for every major investor group.’

The delinquency rate for multifamily loans held by Freddie Mac was 6.76 percentage points lower than the series high (6.81%, reached in the fourth quarter of 1992), while the delinquency rate for multifamily loans held by Fannie Mae was 3.44 percentage points below the series high (3.62%, reached during the fourth quarter of 1991).Â

To view the full report, click here.

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