It wasn't that long ago when loan performance wasextraordinarily strong, Jamie Woodwell, MBA's VP ofcommercial/multifamily research, tells, due to the hugelevel of capital available and a robust economy. Therefore it isnot surprising that loan delinquencies are rising in this moreunforgiving environment. "Yes, they are rising but it sill withinexpectations," he says.

The MBA analysis looks at commercial/multifamily delinquencyrates among commercial banks and thrifts, CMBS transactions, lifeinsurance companies and Fannie Mae and Freddie Mac--an investorbase that accounts for 80% of commercial/multifamily mortgage debtoutstanding. It found that between the first and second quarters,the 30-plus day delinquency rate on loans held in CMBS rose 0.05percentage points to 0.53%. The 60-plus day delinquency rate onloans held in life company portfolios rose 0.02 percentage pointsto 0.03%. The 60-plus day delinquency rate on multifamily loansheld or insured by Fannie Mae rose 0.02 percentage points to 0.11%.The 60-plus day delinquency rate on multifamily loans held orinsured by Freddie Mac fell 0.01 percentage points to 0.03%. The90-plus day delinquency rate on loans held by FDIC-insured banksand thrifts rose 0.17 percentage points to 1.18%.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.