The Real Deal New York

Commercial, multifamily mortgage delinquencies tumble in Q4

Experts attribute drop in delinquent mortgages to rising home values
March 05, 2014 03:45PM

Rising home prices and values are boosting the performance of commercial and multifamily mortgage loans and lowering delinquency rates, according to industry researchers.

The number of loans with delinquent payments dropped in the fourth quarter of 2013, and dropped 7.48 percentage points from a series high of 7.53 percent in 1992.

The delinquency rate for loans held in CMBS dropped .66 percent to 6.97 percent in the fourth quarter of 2013, while the 90-day delinquency rate for loans held by FDIC-insured banks and thrifts dropped .25 percent to 1.70 percent, according to the Mortgage Bankers Association’s fourth-quarter commercial and multifamily delinquency report.

“Commercial and multifamily mortgages performed relatively well during the downturn, and for most investor groups delinquency rates are now back in the lower end of their historical range,” Jamie Woodwell, MBA’s vice president of commercial real estate research, said the report.

For commercial and multifamily loans held in life insurance company portfolios, the delinquency rate decreased .01 percent to .05 percent. The rate for multifamily loans held or insured by Freddie Mac increased .04 points to .09 percent, while those held by Fannie Mae, decreased .08 percent to .10 percent. [GlobeSt] Angela Hunt