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MBA: Delinquencies remain at rock bottom for commercial/multifamily loans

New report shows that delinquencies remain near 0% for five major investor types

Delinquency rates for commercial and multifamily mortgage loans remain near rock bottom, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Delinquency Report.

"Mortgages backed by commercial and multifamily properties continue to perform extremely well," MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in a statement. 

"Delinquency rates are at or near their all-time lows across most capital sources. This continues to be driven by strong property fundamentals, increasing property values, still-low mortgage rates and readily available financing," he added.

The report looks at delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae and Freddie Mac.

Q1 delinquencies based on unpaid principal balance by group are as follows, according to the report:

  • Banks and thrifts (90 or more days delinquent or in non-accrual) = 0.51%, unchanged from the fourth quarter of 2017.
     
  • Life company portfolios (60 or more days delinquent) = 0.02%, a decrease of 0.01 percentage points from the fourth quarter of 2017.
     
  • Fannie Mae (60 or more days delinquent) = 0.13%, an increase of 0.02 percentage points from the fourth quarter of 2017.
     
  • Freddie Mac (60 or more days delinquent) = 0.02%, unchanged from the fourth quarter of 2017.
     
  • CMBS (30 or more days delinquent or in REO) = 3.93%, a decrease of 0.15 percentage points from the fourth quarter of 2017.

 

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