Commercial mortgage delinquencies worsened during the fourth quarter, but varied widely based on investor type, according to the Mortgage Bankers Association‘s latest Commercial/Multifamily Delinquency Report.
Between the third and fourth quarters, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) increased 0.54 percent to 1.17 percent.
The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae also nearly doubled, rising 0.14 percent to 0.30 percent.
“As expected, the weakening economy continues to take a toll on the performance of commercial and multifamily mortgages,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.
“But counter to the popular urban myth, commercial and multifamily mortgages are actually performing better than just about every other type of loan.
That point is illustrated in the fact that the 60+ day delinquency rate on loans held in life insurance company portfolios increased just a single basis point to 0.07 percent.
“To put these numbers in context, of 35,069 commercial/multifamily loans in life company portfolios, with a total unpaid principal balance of $253 billion, only 33 loans with an aggregate UPB of less than $168 million were 60+ days delinquent at the end of the quarter,” the report said.
The 90+ day delinquency rate on loans held by FDIC-insured banks and thrifts increased 0.24 percent to 1.62 percent, while Freddie Mac’s 90+ day delinquency rate on multifamily loans remained unchanged at 0.01 percent.
Lots of vacant space out there…