4Q delinquencies fall again.
Delinquency rates for commercial and multifamily mortgage loans continued to decline in the fourth quarter, the Mortgage Bankers Association (MBA) said in its quarterly Commercial/Multifamily Delinquency Report.
The report said the 60-plus-day delinquency rate for commercial and multi-family mortgages held in life company portfolios decreased by 0.01 percentage points in the fourth quarter to 0.05 percent. The 60-plus-day delinquency rate for multifamily loans held or insured by Fannie Mae decreased by 0.08 percentage points to 0.10 percent. The 90-plus-day delinquency rate for loans held by Federal Deposit Insurance Corporation-insured (FDIC-insured) banks and thrifts decreased by 0.25 percentage pints to 1.70 percent. The 30-plus-day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) decreased by 0.66 percentage points to 6.97 percent.
"Rising property incomes and values continue to boost the performance of commercial and multifamily mortgage loans," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "Commercial and multifamily mortgages performed relatively well during the downturn, and for most investor groups delinquency rates are now back in the lower end of their historical range." The fourth-quarter delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios came in 7.48 percentage points lower than the series high (7.53 percent, reached during second-quarter 1992). The delinquency rate for multifamily loans held by Freddie Mac was 6.72 percentage points lower than the series high (6.81 percent, reached in fourth-quarter 1992). The delinquency rate for multifamily loans held by Fannie Mae fell 3.52 percentage points below the series high (3.62 percent, reached during fourth-quarter 1991). The rate for commercial and multifamily mortgages held by banks and thrifts fell 4.88 percentage points lower than the series high (6.58 percent, reached in second-quarter 1991). The rate for loans held in CMBS was 2.05 percentage points below the series high (9.02 percent, reached in second-quarter 2011).
Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of "commercial real estate: despite that they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers or other income-producing properties. The FDIC delinquency rates for bank- and thrift-held mortgages reported here do include loans backed by owner-occupied commercial properties.
The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor groups: commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac. Together, these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.
The analysis incorporates the measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another.
To view the report, visit www.mortgage bankers.org/files/research/commercialndr/4q13commercialndr.pdf.
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|Title Annotation:||Commercial; mortgage backed securities|
|Date:||Apr 1, 2014|
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