Commercial and multifamily mortgage delinquency rates fell in the first quarter of 2012 for most of the top investor groups except one: CMBS.
According to figures compiled by the Mortgage Bankers Association, loans included in commercial MBS had an 8.85% delinquency rate at the end of March, compared to 8.56% at yearend. However, a year ago 8.86% of loans included in CMBS were delinquent.
The delinquency rate for CMBS loans covers mortgages that are 30 or more days late, including those in foreclosure and REO.
Besides Freddie Mac, which saw its 60 or more day delinquency rate increase by a meager 0.01% to 0.23%, all other investor types were down quarter-over-quarter.
Multifamily loans held by Fannie Mae that were at least 60 days late in payments dropped to 0.37% in the first quarter. This is 0.22 percentage points lower than 4Q 2011.
For both government-sponsored enterprises, their delinquency rates include loans that are in foreclosure, but not REO.
After their 90 or more day delinquency rates climbed steadily starting in 2008 until the first quarter of 2010, banks and thrifts have seen a turnaround for the sixth straight quarter. The delinquency rate for this investor group is now at 3.44%, well below the 4.41% rate in the third quarter of 2010.
Delinquency rates also declined for life insurance companies for the third straight quarter to 0.14%, which is the same rate from the same time period last year. Life insurance companies track their delinquency rates by assessing loans that are not paid in 60 or more days, including those in foreclosure but not in REO.
