Commercial Delinquencies Rise Moderately

The ratio of commercial mortgages that are past due crept up in the third quarter but remained historically low, according to the Mortgage Bankers Association. Overall, 0.63% of loans in commercial mortgage-backed securities were 30 or more days past due in the third quarter, up 10 basis points from the second quarter. In addition, 1.38% of commercial mortgages held by FDIC insured banks were at least 90 days past due, up 29 basis points from the second quarter. Other investor categories, including life insurance companies, reported lower delinquency rates. Jamie Woodwell, MBA's vice president of commercial real estate research, said that commercial and multifamily mortgages have not seen the same kind of credit deterioration that has been seen in residential real estate, but he said that delinquencies are likely to continue rising due to "economic and credit market stress."