MBA reports commercial mortgage delinquencies remain lowMortgagePress.comMBA, commerical mortgages, CMBS, multifamily
Delinquency rates on commercial/multifamily mortgages remain
low--up slightly from the fourth quarter of 2007, but finishing the
first quarter of 2008 near record lows for most major investor
groups.
"In contrast to mortgages for single-family residential
properties, commercial/multifamily mortgages continue to perform
very well," said Jamie Woodwell, MBA's senior director of
commercial/multifamily research. "Most investor groups saw
delinquency rates rise slightly in the first quarter, but they
remain at the low end of their historical range."
The 30-plus day delinquency rate on loans held in CMBS rose 0.08
percentage points to 0.48 percent. The 60-plus day delinquency rate
on loans held in life company portfolios remained flat at 0.01
percent. The 60-plus day delinquency rate on multifamily loans held
or insured by Fannie Mae rose 0.01 percentage points to 0.09
percent. The 60-plus day delinquency rate on multifamily loans held
or insured by Freddie Mac rose 0.02 percentage points to 0.04
percent. The 90-plus day delinquency rate on loans held by
FDIC-insured banks and thrifts rose 0.21 percentage points to 1.01
percent.
The MBA analysis looks at commercial/multifamily delinquency
rates for five of the largest investor-groups: commercial banks and
thrifts, commercial mortgage-backed securities (CMBS), life
insurance companies, Fannie Mae and Freddie Mac. Together these
groups hold more than 80 percent of commercial/multifamily mortgage
debt outstanding.
The analysis incorporates the same measures used by each
individual investor group to track the performance of their loans.
Because each investor group tracks delinquencies in its own way,
delinquency rates are not comparable from one group to another.
Based on the unpaid principal balance of loans (UPB),
delinquency rates for each group at the end of the fourth quarter
were as follows:
• CMBS: 0.48 percent (30+ days delinquent or in
REO);
• Life company portfolios: 0.01 percent (60+days
delinquent);
• Fannie Mae: 0.09 percent (60 or more days
delinquent);
• Freddie Mac: 0.04 percent (60 or more days delinquent);
and
• Banks and thrifts: 1.01 percent (90 or more days
delinquent or in non-accrual).
To put these numbers in context, of 35,192
commercial/multifamily loans in life company portfolios, with a
total unpaid principal balance of $249 billion, only 10 loans with
an aggregate UPB of less than $29 million were 60-plus days
delinquent at the end of the quarter. Of $1.2 trillion of
commercial/multifamily loans at FDIC-insured banks and thrifts,
only $12 billion was 90-plus days delinquent.
For more information, visit www.mortgagebankers.org.
