MBA: Commercial/Multifamily Delinquencies Continued To Decline In Q1

Posted by Patrick Barnard on June 01, 2015 No Comments
Categories : Commercial Mortgage

Delinquency rates for commercial and multifamily mortgage loans continued to decline in the first quarter, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.

‘Commercial and multifamily mortgage performance continues to improve. Increasing property incomes, rising property values and a strong finance market are working together to push delinquency rates lower,’ says Jamie Woodwell, vice president of commercial real estate research at the MBA.

The MBA report analyzes commercial and multifamily delinquency rates for the five largest groups of investors: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac. Combined, these groups hold more than 80% of all commercial/multifamily mortgage debt outstanding.

Based on the unpaid principal balance of loans, delinquency rates for each group were as follows:

  • Life company portfolios (60 or more days delinquent) were 0.06%, a decrease of 0.02 percentage points from the fourth quarter of 2014;
  • Freddie Mac (60 or more days delinquent) was 0.03%, a decrease of 0.01 percentage points from the fourth quarter of 2014;
  • Banks and thrifts (90 or more days delinquent or in non-accrual) were 1.03%, a decrease of 0.11 percentage points from the fourth quarter of 2014;
  • CMBS (30 or more days delinquent or in REO) was 5.17%, a decrease of 0.19 percentage points from the fourth quarter of 2014; and
  • Fannie Mae (60 or more days delinquent) was 0.09%, an increase of 0.04 percentage points from the fourth quarter of 2014.

According to the MBA, this analysis incorporates the same measures used by each individual investor group to track loan performance. Seeing as each group tracks delinquencies in its own way, delinquency rates are not comparable between groups.

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