Commercial mortgage delinquencies are nearly 9% for loans backing commercial mortgage-backed securities as of the end of 1Q13, but under 1% for loans owned by life companies, Fannie Mae and Freddie Mac, according to figures compiled by the Mortgage Bankers Association.
Comparisons across investor types are not possible because the source for each investor uses different measures.
Based on the unpaid principal balance of loans, the delinquency rate for life companies was 0.09% when the loan was 60 days or more delinquent. That is an increase of a single basis point from
Freddie Mac was 0.16% and Fannie Mae 0.39, also at 60 days or later delinquent. Banks and thrifts have a rate of 2.43% at 90 or more days delinquent or in nonaccrual, while CMBS loans have a rate of 8.55% at 30 or more days delinquent or in REO.
CMBS peaked at 8.97% in 2Q12, and were at 8.72% in 4Q12.
According to data from Trepp, the percentage of 30-plus-day delinquencies
“Commercial and multifamily mortgage performance continues to improve,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “The improving economy and property fundamentals are supporting loan payments and fewer loans are maturing this year than did last year or the year before. With interest rates still low, property incomes improving and property values on the rise, those loans that are maturing are facing an easier environment in which to refinance.”
