Delinquency rates were mixed in the second quarter for commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.
The delinquency rate for loans held in CMBS is the highest since the series began in 1997. Delinquency rates for other groups remain below levels seen in the early 1990’s, some by large margins.
“Different investor groups lend in different ways and on different types of properties,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Those differences are becoming more evident as the economy continues to struggle to work its way out of the recession."
Woodwell added that life insurance companies, Fannie Mae and Freddie Mac are still experiencing relatively low delinquency rates on their commercial and multifamily mortgages. The delinquency rate on banks’ commercial and multifamily mortgages seems to have reached a plateau, he said, and the delinquency rate for loans in CMBS increased during the period.
Performance across all investor groups will continue to depend on economic growth and its ability to generate demand for commercial real estate space.
Between the first quarter and second quarter 2010, the 30+ day delinquency rate on loans held in CMBS rose 1.39 percentage points to 8.22%. The 60+ day delinquency rate on loans held in life company portfolios decreased 0.02 percentage points to 0.29 %.
The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.01 percentage points to 0.80 %. The 60+ day delinquency rate on multifamily loans held or insured by Freddie Mac increased 0.03 percentage points to 0.28%.
The 90+ day delinquency rate on loans held by Federal Deposit Insurance Corp.-insured banks and thrifts remained unchanged at 4.26 %.