While commercial MBS loan performance appears to be stabilizing, delinquency rates are continuing to climb, hitting a survey-record high in the third quarter, according to new figures compiled by the Mortgage Bankers Association.
The unpaid principal balance of CMBS loans 30-plus days delinquent (or in real estate-owned) rose 36 basis points to 8.58% at Sept. 30. (The comparison is to June 30.)
It marks the highest delinquency ratio since MBA began tracking the data point back in 1997.
In addition to CMBS, the MBA also provides quarterly delinquency figures for other commercial and multifamily loan investor groups. Because these investor groups use delinquency measures that differ, their late pay rates are not always comparable.
All of the other investor categories tracked by the MBA are below their respective survey highs. Some have survey histories that date back to the early 1990s, when those highs were generally reached. All delinquency rates tracked by the MBA are based on the UPB of loans.
During the third quarter, loans in life company portfolios saw their 60-plus day delinquency rate drop from the second quarter by seven basis points to 0.22%.
The average delinquency rate on multifamily loans held or insured by Fannie Mae, expressed in terms of payments late by 60 or more days, dropped 15 basis points to 0.65%. The average delinquency rate on multifamily loans held or insured by Freddie Mac, expressed in the same terms, rose by seven basis points to 0.35%.
Federal Deposit Insurance Corp. banks and thrifts, which measure late payments in terms of commercial/multifamily loans 90-or-more-days delinquent or in non-accrual, saw an increase of 15 bps to 4.41%.
