MBA: commercial/multifamily mortgage delinquency rates up slightlyMortgagePress.comdelinquency rates, Fannie Mae, Freddie Mac, commercial/multi-family research
Delinquency rates ticked up slightly in the second quarter for
most commercial/multifamily mortgage investor groups, but remained
at the lower end of their historical ranges, according to a new
report from the Mortgage Bankers Association.
"Commercial/multifamily mortgages are not seeing the same kinds
of deterioration in performance that single-family mortgages,
construction and some other types of loans have seen," said Jamie
Woodwell, MBA's vice president of commercial/multifamily research.
"While delinquency rates for most commercial/multifamily investor
groups are slightly higher over the last two quarters, it is
important to remember that we are coming off record lows for the
past year. The take away is that commercial/multifamily mortgage
performance generally remains strong and well within
expectations."
Between the first and second quarters, the 30-plus day
delinquency rate on loans held in commercial mortgage-backed
securities (CMBS) rose 0.05 percentage points to 0.53 percent. The
60-plus day delinquency rate on loans held in life company
portfolios rose 0.02 percentage points to 0.03 percent. The 60-plus
day delinquency rate on multifamily loans held or insured by Fannie
Mae rose 0.02 percentage points to 0.11 percent. The 60-plus day
delinquency rate on multifamily loans held or insured by Freddie
Mac fell 0.01 percentage points to 0.03 percent. The 90-day
delinquency rate on loans held by FDIC-insured banks and thrifts
rose 0.17 percentage points to 1.18 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, 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: 0.53 percent (30+ days delinquent or in REO);
•Life company portfolios: 0.03 percent (60+days
delinquent);
•Fannie Mae: 0.11 percent (60 or more days delinquent);
•Freddie Mac: 0.03 percent (60 or more days
delinquent);and
•Banks and thrifts: 1.18 percent (90 or more days delinquent
or in non-accrual).
To put these numbers in context, of 35,276
commercial/multifamily loans in life company portfolios, with a
total unpaid principal balance of $252 billion, only 23 loans with
an aggregate UPB of less than $69 million were 60+ days delinquent
at the end of the quarter. Of $1.2 trillion of
commercial/multifamily mortgages at FDIC-insured banks and thrifts,
only $15 billion was 90+ days delinquent.
For more information, visit www.mortgagebankers.org/research.
