Commercial/Multifamily Mortgage Defaults Fell to Twenty Year Low Level in Second Quarter

The Mortgage Bankers Association released their (MBA) Commercial/Multifamily Delinquency Report on Thursday revealing that fewer borrowers were defaulting on commercial and multifamily loans in the second quarter of 2014 (Q2 2014), a statistic that backs up another analysis we conducted earlier this week on the market.

The MBA’s study on the market takes into account the amount of mortgage defaults seen in commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae, and Freddie Mac (five of the largest investor-groups). Although Construction and development loans are not included in the numbers presented by the MBA, the five top loan holders that they do present contain 80% of the total outstanding debt out there for commercial/multifamily mortgages. Thus, the figures illustrated by the MBA help us see how well or bad the market is actually doing. (more…)

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