MBA Study: Delinquency Rates Rise For Commercial And Multifamily Mortgages

akening economy and continued credit crunch led to increases in commercial/multifamily mortgage delinquencies during the first quarter of 2009, according to the [link=http://www.mortgagebankers.org/files/Research/CommercialNDR/1Q09CommercialNDR.pdf][u]Commercial/Multifamily Delinquency Report[/u][/link] released by the Mortgage Bankers Association (MBA). ‘Delinquency rates on commercial and multifamily mortgages held by banks and thrifts, by Fannie Mae and in commercial mortgage-backed securities (CMBS) are all now at levels higher than at any time since the 2001 recession," says Jamie Woodwell, vice president of commercial real estate research at the MBA. "First-quarter delinquency rates on commercial mortgages held by life insurance companies remained below the 2001 recession levels.’ Between the fourth quarter of 2008 and first quarter of 2009, the 30+ day delinquency rate on loans held in CMBS rose 0.68 percentage points to 1.85%. The 60+ day delinquency rate on loans held in life insurance company portfolios rose 0.05 percentage points to 0.12%. The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.04 percentage points to 0.34%, while the 90+ day delinquency rate on multifamily loans held or insured by Freddie Mac rose 0.08 percentage points to 0.09%. The MBA notes that in June 2008, Freddie Mac began reporting multifamily delinquencies as those loans 90+ days delinquent. Prior to that time, the reported numbers were for loans 60+ days delinquent. The 90+day delinquency rate on loans held by Federal Deposit Insurance Corp.-insured banks and thrifts rose 0.66 percentage points to 2.28%. SOURCE: Mortgage Bankers Asso