Commercial, Multi-Family Delinquency Rates Rising

Washington, DC, Sept. 10, 2009--Delinquency rates continued to increase in the second quarter for all commercial/multifamily mortgage investor groups, according to the Commercial/Multifamily Delinquency Report from the Mortgage Bankers Association.

“The economic fallout of the recession continued to push commercial and multifamily delinquency rates higher during the second quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research.

“Lower levels of employment, the pullback by consumers and other aspects of the slowdown translated into a difficult operating environment for many income-producing properties.  That in turn has led to increased stress on the loans those properties support.”

Between the first and second quarters, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) rose 2.04 percentage points to 3.89 percent.  The 60+ day delinquency rate on loans held in life company portfolios rose 0.03 percentage points to 0.15 percent.  The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.17 percentage points to 0.51 percent.  The 90+ day delinquency rate on multifamily loans held or insured by Freddie Mac rose 0.02 percentage points to 0.11 percent.  The 90+day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.64 percentage points to 2.92 percent.