WASHINGTON, DC—Delinquencies on commercial and multifamily mortgages remained low during the fourth quarter, the Mortgage Bankers Association said Thursday. An exception to the general rule was CMBS late-pays, which rose during Q4—and which, according to the latest data from Fitch Ratings, are continuing to rise.
MBA data encompass loans held by commercial banks, life insurance companies, CMBS and Fannie Mae and Freddie Mac. Aside from CMBS, all had delinquency rates below 1% as of Dec. 31, 2016. The lowest rates of late-pays were held by the GSEs, with Fannie's declining 0.02 percentage points from Q3 to 0.05% and Freddie coming in even lower at 0.03%, albeit with a quarterly increase of 0.02 percentage points.
Banks and thrifts saw delinquencies decrease by 0.03 percentage points to 0.59% during Q4; for life companies, the decrease was 0.04 percentage points, effectively halving the delinquency rate for this investor class. CMBS, by contrast, saw late-pays rise by 0.30 percentage points to 4.53%.
“For most investor groups, commercial and multifamily mortgage delinquencies are at or near their all-time lows,” says Jamie Woodwell, VP of commercial real estate research at MBA. He calls the 60-day-plus delinquencies for life companies and the GSES “extraordinarily low,” while 30-day late-pays for banks are at “their lowest on record, going back to 1993.” He attributes the elevated levels of delinquencies and loans in foreclosure for CMBS as an effect of the market working through “the large volume of mortgages made during the 2005-to-2007 time period.”
In keeping with Woodwell's comments on CMBS, Fitch said Friday that delinquencies for pre-2008 securitizations—the so-called CMBS 1.0—have risen for 13 consecutive months and now stand at 18%. That's within the context of an overall monthly increase of three basis points to 3.37% as of Feb. 28 for Fitch-rated CMBS.
Helping drive the increase was a 34-bp rise in office delinquencies to 5.41%, although hotel late-pays saw an even steeper monthly drop of 37 bps to 3.28%. All other property types saw month-over-month increases ranging from two to 14 bps, according to Fitch data.
WASHINGTON, DC—Delinquencies on commercial and multifamily mortgages remained low during the fourth quarter, the Mortgage Bankers Association said Thursday. An exception to the general rule was CMBS late-pays, which rose during Q4—and which, according to the latest data from Fitch Ratings, are continuing to rise.
MBA data encompass loans held by commercial banks, life insurance companies, CMBS and
Banks and thrifts saw delinquencies decrease by 0.03 percentage points to 0.59% during Q4; for life companies, the decrease was 0.04 percentage points, effectively halving the delinquency rate for this investor class. CMBS, by contrast, saw late-pays rise by 0.30 percentage points to 4.53%.
“For most investor groups, commercial and multifamily mortgage delinquencies are at or near their all-time lows,” says Jamie Woodwell, VP of commercial real estate research at MBA. He calls the 60-day-plus delinquencies for life companies and the GSES “extraordinarily low,” while 30-day late-pays for banks are at “their lowest on record, going back to 1993.” He attributes the elevated levels of delinquencies and loans in foreclosure for CMBS as an effect of the market working through “the large volume of mortgages made during the 2005-to-2007 time period.”
In keeping with Woodwell's comments on CMBS, Fitch said Friday that delinquencies for pre-2008 securitizations—the so-called CMBS 1.0—have risen for 13 consecutive months and now stand at 18%. That's within the context of an overall monthly increase of three basis points to 3.37% as of Feb. 28 for Fitch-rated CMBS.
Helping drive the increase was a 34-bp rise in office delinquencies to 5.41%, although hotel late-pays saw an even steeper monthly drop of 37 bps to 3.28%. All other property types saw month-over-month increases ranging from two to 14 bps, according to Fitch data.
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