U.S. Commercial, Multifamily Mortgage Delinquencies Remain Low

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According to the Mortgage Bankers Association's latest Commercial/Multifamily Delinquency Report, delinquency rates for commercial and multifamily mortgage loans continued to decline in the fourth quarter of 2015.

"The performance of commercial and multifamily mortgages remains strong, with continued improvement in the delinquency rates of loans held by banks and in commercial mortgage backed securities (CMBS)," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.  "Strong property fundamentals and values, coupled with still low interest rates, are likely to continue the positive trend."
 
The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac.  Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.
 
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the fourth quarter were as follows:
 

• Banks and thrifts (90 or more days delinquent or in non-accrual): 0.73 percent, a decrease of 0.09 percentage points from the third quarter of 2015;

• Life company portfolios (60 or more days delinquent): 0.04 percent, unchanged from the third quarter of 2015;

• Fannie Mae (60 or more days delinquent): 0.07 percent, an increase of 0.02 percentage points from the third quarter of 2015;

• Freddie Mac (60 or more days delinquent): 0.02 percent, an increase of 0.01 percentage points from third quarter of 2015;

• CMBS (30 or more days delinquent or in REO): 4.73 percent, a decrease of 0.11 percentage points from the third quarter of 2015.