Commercial and multifamily mortgage loan delinquency rates remained low in the fourth quarter of 2016, according to the latest Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.
Here are the key points from the MBA:
Banks and thrifts (90 or more days delinquent or in non-accrual): 0.59 percent, a decrease of 0.03 percentage points from the third quarter of 2016;
Life company portfolios (60 or more days delinquent): 0.04 percent, a decrease of 0.04 percentage points from the third quarter of 2016;
Fannie Mae (60 or more days delinquent): 0.05 percent, a decrease of 0.02 percentage points from the third quarter of 2016;
Freddie Mac (60 or more days delinquent): 0.03 percent, an increase of 0.02 percentage points from third quarter of 2016;
CMBS (30 or more days delinquent or in REO): 4.53 percent, an increase of 0.30 percentage points from the third quarter of 2016.
MBA’s Vice President of Commercial Real Estate Research, Jamie Woodwell had issued this statment:
“For most investor groups, commercial and multifamily mortgage delinquencies are at or near their all-time lows. Sixty-plus day delinquency rates at Freddie Mac, life companies and Fannie Mae are, respectively, 0.03 percent, 0.04 percent and 0.05 percent – all extraordinarily low.
The 30+ day delinquency rates for banks and thrifts are at their lowest on record, going back to 1993. Only loans in commercial mortgage-backed securities continue to show elevated levels of delinquencies and loans in foreclosure, as the market continues to work through the large volume of mortgages made during the 2005 to 2007 time period.”
The MBA report is based on the five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac.