Multifamily Overdues Fall 1st Time in Year

WASHINGTON-The 30-day-or-more past-due rate on securitized multifamily mortgages fell slightly in April for the first time since May 2009.

Trepp LLC reported the 30-day-plus delinquency rate fell to 13.06%, down 13 basis points from March.

Trepp vice president Paul Mancuso warned not to read too much into this one-month dip. "One month does not make a trend. If it continues then there may be something to comment on," he said.

In March, the multifamily delinquency rate shot up 330 basis points to 3.19% with the much-anticipated default of the Stuyvesant Town and Peter Cooper Village project in New York.

Without the $3 billion in Stuyvesant Town CMBS moving into the "foreclosure" category, the delinquency rate would have jumped 62 bps to 10.5% in March, Trepp reported.

The New York firm tracks the performance of commercial mortgage-backed securities.

Fannie Mae and Freddie Mac own $2 billion in CMBS backed by Stuyvesant Town and Peter Cooper Village multifamily mortgages.

Overall, the 30-day-or-more past-due rate on CMBS rose 41bps to 8.02 in April, up from 2.45% a year ago.

Office delinquencies rose the most (64 bps) in April followed by retail (41 bps).

The 60-day-plus CMBS delinquency rate hit 7.14% in April, up 48 bps from March.

Trepp analysts recently took a look at the impact commercial real estate loans are having on banks.

"Weakening commercial real estate and construction loans continue to drive bank failures," the Trepp analysts said in a report.

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