Commercial Mortgage Bank Delinquencies Drop

Commercial and multifamily mortgage delinquency rates dropped for banks during 1Q12, according to the Mortgage Bankers Association’s Commercial/Multifamily Delinquency Report, which analyzes delinquency data from commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae, and Freddie Mac. 

Life insurance companies, Fannie Mae, and banks and thrifts logged the largest declines. The delinquency rate for commercial and multifamily mortgages held in life company portfolios decreased 0.03 percentage points, the delinquency rate for Fannie Mae’s multifamily loans dropped 0.22 percentage points, and the delinquency rate for FDIC-insured bank and thrift loans decreased 0.13 percent.

Delinquencies increased among loans held by Freddie Mac and within the CMBS sector. Freddie Mac’s multifamily loan delinquency rate increased 0.01 percent, while CMBS loan delinquencies increased 0.29 percentage points.

Commercial and Multifamily Delinquency Rates

Based on 1Q12 unpaid principal balance

  • Life company portfolios: 0.14% (60 or more days delinquent)
  • Freddie Mac: 0.23% (60 or more days delinquent)
  • Fannie Mae: 0.37% (60 or more days delinquent)
  • Banks and thrifts: 3.44% (90 or more days delinquent or in nonaccrual)
  • CMBS: 8.85% (30 or more days delinquent or in REO)

Source:  CCIM

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