It wasn't that long ago when loan performance was extraordinarily strong, Jamie Woodwell, MBA's VP of commercial/multifamily research, tells GlobeSt.com, due to the huge level of capital available and a robust economy. Therefore it is not surprising that loan delinquencies are rising in this more unforgiving environment. "Yes, they are rising but it sill within expectations," he says.
The MBA analysis looks at commercial/multifamily delinquency rates among commercial banks and thrifts, CMBS transactions, life insurance companies and Fannie Mae and Freddie Mac--an investor base that accounts for 80% of commercial/multifamily mortgage debt outstanding. It found that between the first and second quarters, the 30-plus day delinquency rate on loans held in CMBS rose 0.05 percentage points to 0.53%. The 60-plus day delinquency rate on loans held in life company portfolios rose 0.02 percentage points to 0.03%. The 60-plus day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.02 percentage points to 0.11%. The 60-plus day delinquency rate on multifamily loans held or insured by Freddie Mac fell 0.01 percentage points to 0.03%. The 90-plus day delinquency rate on loans held by FDIC-insured banks and 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 GlobeSt.com 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.
