Commercial and Multifamily Delinquency Rates Remain Low

There is good news on the commercial real estate front: The Mortgage Bankers Association (MBA) is reporting that delinquency rates for commercial and multifamily mortgage loans were on the low side during the second quarter.

According to the MBA’s latest Commercial/Multifamily Delinquency Report, delinquency rates for this sector based on the unpaid principal balance of loans decreased among banks and thrifts (0.66 percent, down 0.07 percent from the first quarter) and Freddie Mac (0.02 percent, down 0.02 percent from first quarter) but were up slightly among life company portfolios (0.11 percent, an increase of 0.05 percent from the first quarter), Fannie Mae (0.07 percent, up 0.01 percent from the first quarter) and commercial mortgage-backed securities (4.04 percent, an increase of 0.17 percent from the first quarter).

“For most capital sources, commercial and multifamily mortgage delinquency rates are near the lowest levels seen during the past 20 years,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Strong property fundamentals, rising property values and solid mortgage availability are all supporting these rates.”

Separately, the MBA released its mid-year ranking of commercial and multifamily mortgage servicer volumes. As of June 30, Wells Fargo Bank NA topped the list with $502.2 billion in master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $499.1 billion, Berkadia Commercial Mortgage LLC with $220.6 billion, KeyBank NA with $195.4 billion and CBRE Loan Services with $108.3 billion.