MBA: Commercial Mortgage Delinquencies Dipped Slightly In Fourth Quarter

Posted by Patrick Barnard on March 05, 2014 No Comments
Categories : Commercial Mortgage

The Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report shows that delinquency rates for commercial and multifamily mortgage loans continued to decline in the fourth quarter of 2013.

As per a press release, key findings of the report include the following:

  • The 60-plus-day delinquency rate for commercial and multifamily mortgages held in life company portfolios decreased 0.01 percentage points to 0.05%.
  • The 60-plus-day delinquency rate for multifamily loans held or insured by Freddie Mac increased 0.04 percentage points to 0.09%.
  • The 60-plus-day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.08 percentage points to 0.10%.
  • The 90-plus-day delinquency rate for loans held by FDIC-insured banks and thrifts decreased 0.25 percentage points to 1.70%.
  • The 30-plus-day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) decreased 0.66 percentage points to 6.97%.

"Rising property incomes and values continue to boost the performance of commercial and multifamily mortgage loans," says Jamie Woodwell, vice president of commercial real estate research for the MBA, in the release. "Commercial and multifamily mortgages performed relatively well during the downturn, and for most investor groups, delinquency rates are now back in the lower end of their historical range."

The report also includes the following key findings:

  • The delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.48 percentage points lower than the series high of 7.53%, reached during the second quarter of 1992.
  • The delinquency rate for multifamily loans held by Freddie Mac was 6.72 percentage points lower than the series high of 6.81%, reached in the fourth quarter of 1992.
  • The delinquency rate for multifamily loans held by Fannie Mae was 3.52 percentage points below the series high of 3.62%, reached during the fourth quarter of 1991.
  • The rate for commercial and multifamily mortgages held by banks and thrifts was 4.88 percentage points lower than the series high of 6.58%, reached in the second quarter of 1991).
  • The rate for loans held in commercial mortgage-backed securities was 2.05 percentage points below the series high of 9.02%, reached in the second quarter of 2011.

Construction and development loans are not included in the report's figures – however, the numbers do include loans backed by owner-occupied commercial properties.

To view the full report, click here.

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