WASHINGTON, DC-Non-securitized commercial mortgage debtcontinues to look pretty healthy compared to CMBS. TheMortgage Bankers Association, based here, reportedin June that delinquency rates rose for CMBS during the firstquarter, while for banks and life companies, they declined furtherfrom levels that are already low compared to securitized loans. Andfor legacy CMBS, more pain is on the horizon asMorningstar said last week that nearly half thesecuritized debt scheduled to mature over the next 12 months isalready on its watchlist.

With a Q1 60-plus-day delinquency rate of just 0.14%, “The lifecompanies’ numbers is extremely low and stayed low throughout thecredit crunch and recession,” Jamie Woodwell,MBA’s VP of commercial/multifamily research, tells GlobeSt.com.During the same period, banks’ commercial and multifamily mortgagedelinquencies increased, “but they have been coming in for a numberof quarters as the economy has stabilized, demand for commercialreal estate has stabilized and prices have begun to improve.”

As of Q1, the 90-plus-day delinquency rate for banks was 3.44%,down 0.13 percentage points from the end of 2011, whiledelinquencies for Fannie Mae and FreddieMac stood at 0.37% and 0.23%, respectively. Banks, lifecompanies and the two largest GSEs all reachedtheir commercial and multifamily mortgage delinquency peaks duringthe early 1990s downturn, according to MBA.