The Real Deal Miami

Commercial loan delinquency on rise: MBA

December 07, 2009 12:29PM

Jamie Woodwell, vice president of commercial real estate research for the MBA

Delinquency rates on many commercial and multi-family property mortgages continued their upward climb in the third quarter, according to the Mortgage Bankers Association’s Commercial/Multi-family Delinquency Report, released today. The 30-or-more-day delinquency rate on loans in commercial mortgage-backed securities hit 4.06 percent in the third quarter, up .17 percent from the second quarter this year. The delinquency rate on multi-family loans held or insured by Fannie Mae and Freddie Mac also jumped between the second and third quarters. Fannie Mae saw .62 percent of loans 60 or more days delinquent, up .11 percent from the previous quarter, while Freddie Mac saw .11 percent of loans 90 or more days delinquent. Jamie Woodwell, vice president of commercial real estate research for the MBA, said that the data reflects the ongoing challenges that the commercial market is facing. “Commercial and multifamily mortgages continued to feel stress in the face of the weakened economy,” Woodwell said of the third-quarter performance. Still, Woodwell said that some properties have weathered the storm better than others. “The deterioration in commercial and multifamily loan performance is generally in line with what is being seen in other parts of the economy, with loans backed by commercial properties continuing to perform far better than construction and development loans.” TRD