MBA: Commercial Overdues Near Record Lows

Commercial and multifamily mortgage delinquencies ended 2007 at or near record lows for most major investor groups, according to the Mortgage Bankers Association. In its first such analysis, the MBA looked at commercial/MF delinquency rates since 1996 and compared year-end rates for the five largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae, and Freddie Mac. For CMBS, delinquency rates were lower than those at the end of nine of the previous 10 years; for Fannie and Freddie they were equal to or lower than in 10 of the previous 11 years; and for life companies they were lower than in the previous 11 years. For banks and thrifts, they were lower than in five of the previous 11 years, the MBA reported. "While the numbers aren't comparable across different investor groups, within each group they show a common theme -- for nearly every investor group, commercial/multifamily loans are currently performing at some of the strongest levels on record," said Jamie Woodwell, MBA's senior director of commercial/multifamily research. The MBA can be found online at http://www.mortgagebankers.org.