Bank Commercial Mortgage Delinquencies Lowest on Record in U.S.

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Fourth Quarter 2017 Commercial, Multifamily Delinquencies Remain Low

According to the Mortgage Bankers Association's Commercial & Multifamily Delinquency Report, delinquency rates for commercial and multifamily mortgage loans were relatively flat in the fourth quarter of 2017.

"Commercial and multifamily mortgages ended 2017 continuing to perform extraordinarily well," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The market tailwinds of strong fundamentals, increasing property values and ready access to mortgage and other credit all put downward pressure on delinquency rates."

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, commercial mortgage 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): 0.51 percent, a decrease of 0.02 percentage points from the third quarter of 2017;

• Life company portfolios (60 or more days delinquent): 0.03 percent, an increase of 0.01 percentage points from the third quarter of 2017;

• Fannie Mae (60 or more days delinquent): 0.11 percent, an increase of 0.08 percentage points from the third quarter of 2017;

• Freddie Mac (60 or more days delinquent): 0.02 percent, unchanged from the third quarter of 2017;

• CMBS (30 or more days delinquent or in REO): 4.08 percent, a decrease of 0.52 percentage points from the third quarter of 2017.