Commercial/multifamily mortgage delinquency rates among four out of five major investor groups decreased in the second quarter, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report. The outlier, according to the report, were loans held in commercial mortgage-backed securities (CMBS).
‘Commercial/multifamily mortgage delinquency rates for four of five major investor groups – banks, life insurance companies, Fannie Mae and Freddie Mac – declined in the second quarter and remain below levels seen in the last major real estate downturn during the early 1990s – some by large margins,’ says Jamie Woodwell, the MBA's vice president of commercial real estate research. ‘The delinquency rate for loans held in CMBS continued to rise during the second quarter and reached the highest level since the series began in 1997, although the rate of increase continues to moderate.’
Based on the unpaid principal balance of loans (UPB), delinquency rates for each investor group at the end of the second quarter were as follows:
- The 30+ day delinquency rate for CMBS loans increased 0.25 percentage points to 9.43%;
- The 60+ day rate for life company portfolios fell 0.02 percentage points to
0.12%;
- The 60+ day delinquency rate for multifamily loans held or insured by Fannie
Mae decreased 0.18 percentage points to 0.46%; and
- The 60+ day delinquency rate for multifamily loans held or insured by Freddie
Mac decreased 0.05 percentage points to 0.31%.
To view the report, click here.
