Delinquency rates for commercial and multifamily mortgage loans were relatively unchanged in the second quarter of 2017, according to the Mortgage Bankers Association’s Commercial/Multifamily Delinquency Report.
For banks and thrifts, the delinquency rate was 0.54 percent, a decrease of 0.02 percentage points from the first quarter of 2017. However, for Commercial-Backed Mortgage Securities (CMBS) the rate was 4.84 percent, an increase of 0.39 percentage points from the first quarter of 2017.
For Fannie Mae mortgages the rate was 0.04 percent, a decrease of 0.01 percentage points, while the rate for Freddie Macs was 0.01 percent, a drop of 0.02 percentage points. Finally, for life insurance company portfolios the rate was 0.02 percent, an increase of 0.02 percentage points from the first quarter of 2017;
“Loans backed by commercial and multifamily properties continue to perform extremely well. For most lender types – including banks, life insurance companies, Fannie Mae and Freddie Mac – delinquency rates are at or near their all-time lows,” Jamie Woodwell, vice president of Commercial Real Estate Research at MBA, said. “The commercial mortgage backed securities market is the one outlier. The slower decline in the balance of loans that are delinquent than in the total of all loans has pushed the delinquency rate higher. We expect that situation to reverse in coming quarters.