Commercial delinquencies take a record dip

by MPA23 Sep 2013

Delinquency rates for commercial and multifamily mortgages were down in the second quarter, according to a report released Sept. 4 by the Mortgage Bankers Association.

“Commercial and multifamily loan performance continued to improve during the second quarter, with delinquency rates falling for every major investor group,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “The quarterly decline in the delinquency rate of loans held in commercial mortgage-backed securities (CMBS) was the largest on record, and delinquency rates for loans held by life companies and the GSEs remain low and fell lower during the quarter.”

The 60-day delinquency rate for commercial or multifamily mortgage loans held by life company portfolios was down 0.01 percentage points to 0.08%, according to MBA’s Commercial/Multifamily Delinquency Report. The 60-day delinquency rate for multifamily mortgages held or insured by Fannie Mae and Freddie Mac were also down. Delinquency on loans held by Fannie decreased 0.11 percentage points to 0.28%, while the delinquency rate on Freddie’s loans decreased 0.7 percentage points to 0.09%.

The 90-day delinquency rate for mortgages held by FDIC-insured banks also dropped, sinking 0.26 percentage points to 2.16%. Meanwhile, the 30-day delinquency rate for loans held in commercial mortgage-backed securities decreased 0.74 percentage points to 7.81%, 1.21 percentage points below the delinquency peak of 9.02% in Q2 of 2011.

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