Delinquency rates for different commercial and multifamily mortgage investor groups were mixed in the third quarter, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report. The delinquency rate for loans held in commercial mortgage-backed securities (CMBS) is the highest since the series began in 1997. Delinquency rates for other groups, meanwhile, remain below levels seen in the early 1990s, some by large margins.
‘Greater strength in the economy is bringing some stability to commercial mortgage delinquency rates,’ says Jamie Woodwell, MBA's vice president of commercial real estate research. ‘Commercial mortgage performance among most investor groups, including life insurance companies, Fannie Mae and Freddie Mac, and commercial banks and thrifts, continues to be better than during the last major downturn of the early 1990s. Although weak, the economic recovery is just beginning to be seen in commercial real estate fundamentals and the mortgages they support.’
Based on the unpaid principal balance of loans, delinquency rates for each investor group at the end of the third quarter were as follows:
- Banks and thrifts:Â 4.41% for loans 90+ days delinquent or in non-accrual status (a 0.15% increase);
- CMBS:Â 8.58% for loans 30+ days delinquent or in real estate owned status (a 0.36% increase);
- Life company portfolios: 0.22% for loans 60+ days delinquent (a 0.07% decrease);
- Fannie Mae: 0.65% for loans 60+ days delinquent (a 0.15% decrease); and
- Freddie Mac: 0.35% for loans 60+ days delinquent (a 0.07% increase).
To view a copy of the report, click here.
SOURCE: Mortgage Bankers Association