Multifamily Delinquencies Decline in 4th Quarter

According to the Mortgage Banking Association’s quarterly multifamily/delinquency report, delinquency rates for multifamily and commercial mortgage loans continued to decline in the 4th quarter.

“Rising property incomes and values continue to boost the performance of commercial and multifamily mortgage loans,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “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 report shows that in the fourth quarter, the 60+ day delinquency rate went down by 0.01 percentage points to 0.05 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac went up by 0.04 percentage points to 0.09 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae went down by 0.08 percentage points to 0.10 percent. The 90+ day delinquency rate for loans held by Federal Deposit Insurance Corp.-insured banks and thrifts went down by 0.25 percentage points to 1.70 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities went down by 0.66 percentage points to 6.97 percent. 

The delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.48 percentage points lower in the fourth quarter than the series high of 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 of 6.81 percent, reached during fourth quarter 1992. The delinquency rate for multifamily loans held by Fannie Mae fell 3.52 percentage points below the series high of 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 of 6.58 percent, reached in second quarter 1991. The rate for loans held in CMBS was 2.05 percentage points below the series high of 9.02 percent, reached in second quarter 2011.

Source: MBA Newslink