Commercial and Multifamily Mortgage Delinquency Rates Remain Flat

National Mortgage Professional Magazine - Phil Hall - 26 Sep 2017

Delinquency rates for commercial and multifamily mortgages were mostly stagnant during the second quarter, according to new data from the Mortgage Bankers Association (MBA).

Banks and thrifts registered a 0.54 percent delinquency rate for commercial and multifamily that were 90 or more days delinquent or in non-accrual, down a slight 0.02 percent from the first quarter. Life company portfolios dealing with loans that were 60 or more days delinquent saw a 0.02 percent rate, an increase of 0.02 percentage points from the first quarter. There were scant decreases in the delinquency rates at Fannie Mae (0.04 percent, down 0.01 percent) and Freddie Mac (0.01 percent, down 0.02 percent), but loans that were 30 or more days delinquent or in REO within commercial mortgage-backed securities registered a 4.84 percent delinquency rate, an increase of 0.39 percentage points from the first quarter.

“Loans backed by commercial and multifamily properties continue to perform extremely well,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “For most lender types—including banks, life insurance companies, Fannie Mae and Freddie Mac—delinquency rates are at or near their all-time lows.”

The MBA data did not include construction and development loans.