Delinquency rates relatively flat says MBA
Commercial and multifamily mortgage loans continued to perform strongly in the first quarter of 2018 with little movement in the delinquency rate.
The Mortgage Bankers Association analyzed delinquency rates for five of the largest investor groups, holding more than 80% of commercial/multifamily debt outstanding.
These groups include commercial banks/thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae, and Freddie Mac.
“Mortgages backed by commercial and multifamily properties continue to perform extremely well,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Delinquency rates are at or near their all-time lows across most capital sources. This continues to be driven by strong property fundamentals, increasing property values, still-low mortgage rates and readily available financing.”
Delinquency rates by investor group
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the first quarter were as follows:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 0.51%, unchanged from the fourth quarter of 2017;
- Life company portfolios (60 or more days delinquent): 0.02%, a decrease of 0.01 percentage points from the fourth quarter of 2017;
- Fannie Mae (60 or more days delinquent): 0.13%, an increase of 0.02 percentage points from the fourth quarter of 2017;
- Freddie Mac (60 or more days delinquent): 0.02%, unchanged from the fourth quarter of 2017;
- CMBS (30 or more days delinquent or in REO): 3.93%, a decrease of 0.15 percentage points from the fourth quarter of 2017.
Delinquency rates are not comparable between the investor groups due to the different ways each group tracks its delinquency rate.
The rates also do not include construction and development loans.