Commercial delinquencies continue decline

by Ryan Smith05 Mar 2014
Delinquency rates for commercial and multifamily mortgages continued their decline in the fourth quarter, according to data released by the Mortgage Bankers Association.

The 60-day delinquency rate for commercial and multifamily loans held in life company portfolios was down 0.1 percentage points to 0.05% in the fourth quarter. Delinquencies on multifamily loans held or insured by Fannie Mae dropped 0.08 percentage points to 0.10%, while delinquencies among those held by Freddie Mac increased 0.04 percentage points to 0.09%. The 90-day delinquency rate for mortgages held by FDIC-insured banks and thrifts dropped 0.25 percentage points to 1.70%, while the 30-day rate for loans held in commercial mortgage-backed securities was down 0.66 percentage points to 6.97%.

“Rising property incomes and values continue to boost the performance of commercial and multifamily mortgage loans,” said Jamie Woodwell, the MBA’s vice president of Commercial Real Estate Research. “Commercial and multifamily mortgages performed relatively well during the downturn, and for most investor groups delinquency rates are now back in the lower end of their historical range.”
 

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