CMBS loan delinquencies remain high, while other commercial loans improve

Commercial mortgage-backed securities loans are showing unusually high delinquency rates, according to the Mortgage Bankers Association, which noted that third-quarter delinquencies in that class of loans reached 8.58 percent — their highest level in more than 10 years. But other commercial and multi-family loans showed improvement in the third quarter, according to the MBA, with delinquency rates on loans held by Fannie Mae and Freddie Mac both below 1 percent. Overall, commercial delinquency rates are improving, according to Jamie Woodwell, vice president of commercial real estate research with the MBA. “Although weak, the economic recovery is just beginning to be seen in commercial real estate fundamentals,” Woodwell said. “Commercial mortgage performance among most investor groups… continues to be better than during the last major downturn of the early 1990s.” TRD