Commercial, Multifamily Mortgage Delinquencies Continue Decline in US

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

"Commercial and multifamily mortgage performance continues to improve. Increasing property incomes, rising property values and a strong finance market are working together to push delinquency rates lower," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.

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 first quarter were as follows:

• Life company portfolios (60 or more days delinquent): 0.06 percent, a decrease of 0.02 percentage points from the fourth quarter of 2014;

• Freddie Mac (60 or more days delinquent): 0.03 percent, a decrease of 0.01 percentage points from the fourth quarter of 2014;

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.03 percent, a decrease of 0.11 percentage points from the fourth quarter of 2014;

• CMBS (30 or more days delinquent or in REO): 5.17 percent, a decrease of 0.19 percentage points from the fourth quarter of 2014;

• Fannie Mae (60 or more days delinquent): 0.09 percent, an increase of 0.04 percentage points from the fourth quarter of 2014.