Delinquency rate for CMBS highest in 14 years
Commercial and multifamily delinquency rates fell in four of the five major investor groups in the second quarter, while the delinquency rate for loans in commercial mortgage-backed securities rose to the highest level in 14 years. The Mortgage Bankers Association said 90-plus day delinquencies for loans held by banks and thrifts insured by the Federal Deposit Insurance Corp. decreased to 3.93% in the second quarter. The 60-plus day delinquency rate of loans in the portfolios of life insurance companies slid to 0.12% from 0.14%. The rate of delinquent multifamily loans held or insured by Fannie Mae declined in the second quarter to 0.46% from 0.64% a quarter before, while the same delinquent rate slid to 0.31% from 0.35% for Freddie Mac multifamily loans. Meanwhile, the 30-day delinquency rate for loans in CMBS climbed to 9.43% in the second quarter from 9.18% the prior quarter. "Commercial/multifamily mortgage delinquency rates for four of five major investor groups - banks, life insurance companies, Fannie Mae and Freddie Mac - declined in the second quarter," said sia Woodwell, MBA vice president of commercial real estate research. And the delinquency rates "remain below levels seen in the last major real estate downturn during the early 1990's, some by large margins." "The delinquency rate for loans held in CMBS continued to rise during the second quarter and reached the highest level since the series began in 1997, although the rate of increase continues to moderate," Woodwell said. Last week, Fitch Ratings said CMBS delinquencies decreased to 8.65% in August from a record 9.01% the prior months, as $3 billion worth of loans left the ratings agency's index. Write to: Kerri Panchuk.