Commercial mortgage delinquencies increased in the second quarter, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report.
“The delinquency rate for loans backed by commercial real estate increased again in the second quarter,” says Jamie Woodwell, head of commercial real estate research for the MBA in a statement. “Delinquency rates increased for bank loans and Freddie Mac loans, as well as those held in CMBS. Delinquency rates decreased for loans held by life companies and were unchanged for Fannie Mae.
“The greatest focus continues to be on office loans, which make up about $740 billion of the $4.7 trillion of commercial mortgage debt outstanding,” Woodwell says. “The CRE market is large and diverse, with significant differences by property type and subtype, market and submarket, borrower, lender, vintage, and more. All of those differences come into play in terms of how an individual loan may perform.”
Looking at the five of the largest investor-groups, banks and thrifts (90 or more days delinquent or in non-accrual) represented 1.15% of all loans, an increase of 0.12 percentage points from the first quarter.
Life company portfolios (60 or more days delinquent) represented 0.43% of all loans – a decrease of 0.09 percentage points from the first quarter.
Fannie Mae (60 or more days delinquent) represented 0.44% of all loans, unchanged from the first quarter.
Freddie Mac (60 or more days delinquent) represented 0.38% of all loans, an increase of 0.04 percentage points from the first quarter.
And CMBS (30 or more days delinquent or in REO) represented 4.82% of all loans, an increase of 0.47 percentage points.
Photo: Étienne Beauregard-Riverin
