Commercial/Multifamily Mortgage Delinquencies
Commercial/Multifamily Mortgage Delinquency Rates Mixed in First Quarter
First Quarter 2011
Delinquency rates among different commercial/multifamily mortgage investor groups were mixed in the first quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.
The delinquency rate for loans held in CMBS reached the highest level since the series began in 1997, but the climb was slower than in recent quarters. Delinquency rates for other groups remain below levels seen in the last major real estate downturn during the early 1990’s, some by large margins.
points lower than the series high
reached during the fourth quarter of the rate for multifamily loans held
by Fannie Mae was
2.98 percentage points
reached and the Freddie
during the fourth quarter of 1991); rate for multifamily loans held by Mac was 6.45 percentage points
lower than the series reached in 1992).
Please note: In March 2011, MBA
a DataNote covering the performance commercial and multifamily mortgages
commercial banks and thrifts over the entire
Between the fourth quarter of 2010 and first quarter of 2011, the 90+ day delinquency rate on loans held by FDIC-insured banks and thrifts remained the same at 4.18 percent. The 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) increased 0.23 percentage points to 9.18 percent. The 60+ day delinquency rate on loans held in life company portfolios decreased 0.05 percentage points to 0.14 percent. The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae decreased 0.07 percentage points to 0.64 percent. The 60+ day delinquency rate on multifamily loans held or insured by Freddie Mac increased 0.10 percentage points to 0.36 percent.
The first quarter 2011 delinquency rate for commercial and multifamily mortgages held by banks and thrifts was 2.40 percentage points lower than the series high (6.58 percent reached in the second quarter of 1991). The rate for loans held in CMBS was
a record delinquency
the series. commercial
multifamily mortgages held in life insurance company portfolios was 7.23 percentage
loan than held
type and had delinquency rates lower the overall book of loans and leases
can be found www.mortgagebankers.org/research
Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of ‘commercial real estate’ despite the fact that they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-
occupied commercial properties.
The MBA analysis
commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial
Fannie Mae these groups
life and hold