Report: Mixed Results for Q3 Commercial Delinquency Rates

According to a report released Wednesday by the Mortgage Bankers Association (MBA), delinquency rates for commercial and multifamily investor groups were very mixed in the third quarter.

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The Commercial/Multifamily Delinquency Report measured commercial mortgage backed securities (CMBS) as well as performance among other investor groups, such as life insurance companies, Fannie Mae and Freddie Mac, and commercial banks and thrifts.

Together these groups hold more than 80 percent of outstanding commercial/multifamily mortgage debt.

Delinquency rates for loans in CMBS are the highest they have been since MBA began studying them in 1997.

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But other investor groups are experiencing rates better than seen in the early 1990's when the market was experiencing its last major slump.

""Greater strength in the economy is bringing some stability to commercial mortgage delinquency rates,"" said Jamie Woodwell, MBA's VP of commercial real estate research.

He continued, ""Although weak, the economic recovery is just beginning to be seen in commercial real estate fundamentals and the mortgages they support.""

The Q3 delinquency rate for commercial and multifamily mortgage held by banks and thrifts was 2.17 percent lower than the 1991 high of 6.58 percent, coming in at 4.41 percent. The 30 day delinquency rate for loans held in CMBS was a record high at 8.58 percent after experiencing a 0.36 percent increase.

60 day delinquency rate on loans held in life company portfolios decreased 0.07 percent to 0.22 percent, and the 60 day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.15 percent to 0.65 percent. For Freddie Mac the rate increased 0.07 percent to 0.35 percent.

The Washington, D.C. based MBA publishes the the Commercial/Multifamily Delinquency Report quarterly.