Commercial Delinquencies Rose in Fourth Quarter

Washington, DC, March 11, 2010--Delinquency rates continued to increase in the fourth quarter for most commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association.

Between the third and fourth quarters, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities rose 1.63 percentage points to 5.69 percent.

The 60+ day delinquency rate on loans held in life company portfolios decreased 0.04 percentage points to 0.19 percent.  The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.01 percentage points to 0.63 percent.

The 90+ day delinquency rate on multifamily loans held or insured by Freddie Mac increased 0.04 percentage points to 0.15 percent.  The 90+day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.49 percentage points to 3.92 percent.

“The ongoing impact of the economic fallout on commercial real estate markets continued to drive up commercial and multifamily mortgage delinquencies for most investor groups in the fourth quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.

“Continued job losses, consumer restraint and a lack of household growth all sustained the pressure on commercial real estate operations and mortgages during the fourth quarter.”

Based on the unpaid principal balance of loans (UPB), delinquency rates for each group at the end of the fourth quarter were as follows: