Commercial Mortgage Delinquencies Up, But Near Record Lows

June 11, 2008 No Comments »

still low

Commercial/multifamily mortgage delinquency rates increased slightly from the fourth quarter, but remain near all-time lows, according to a report from the Mortgage Bankers Association.

The 30+ day delinquency rate (or in REO) on loans held in CMBS climbed eight basis points from the fourth quarter to 0.48 percent in the first quarter, while the 60+ day delinquency rate for loans held in life insurance companies was unchanged at just 0.01 percent.

Multifamily loans held by Fannie Mae saw their 60+ day delinquency rate rise 0.01 percent to 0.09 percent, while brother Freddie’s late rate rose two basis points to 0.04 percent.

“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 only loser in the bunch was the 90+ day delinquency rate on loans held by FDIC-insured banks and thrifts, which jumped 0.21 basis points to 1.01 percent.

While it may seem severe, the MBA noted that only $12 billion of the $1.2 trillion in commercial/multifamily loans at FDIC-insured banks and thrifts were 90+ days delinquent.

The five investor groups mentioned above are the largest holders of commercial/multifamily mortgage debt, holding more than 80 percent of debt outstanding.

(photo: dwstucke)

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