National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Commercial, Multifamily Mortgage Delinquencies Remain Low
Commercial and multifamily mortgage delinquencies remained low in the fourth quarter of 2019, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Delinquency Report, released earlier this month.
Predictably, life companies recorded one of the lowest delinquency rates at 0.04%, tied with Fannie Mae, although the 0.004% reading for life companies was up 0.01 from the previous quarter.
Both GSEs posted delinquency rates below 0.1%, with Freddie Mac’s 0.08% late-pay rate coming in slightly ahead of Fannie Mae’s. For banks and thrifts, the Q4 delinquency rate was 0.42%, down 0.03 from Q3.
CMBS posted the highest delinquency rate at 2.07%, down 22 percentage points from Q3. That compares to 10.34% in 2012, the peak of CMBS delinquencies in the current cycle, according to Trepp.
“Commercial and multifamily mortgages ended the fourth quarter of 2019 much the way they started the year: at or near record low delinquency rates,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “The key drivers—solid property fundamentals, strong property values and low interest rates—continue to support the market.”
He added, “It is too early to tell if and how concerns tied to the coronavirus and the related global slowdown will affect commercial real estate loan performance, but the corresponding drop in financing costs are providing additional near-term support.”
Among them, the five lending sources measured on a quarterly basis by MBA hold more than 80% of commercial/multifamily mortgage debt outstanding.
For comments, questions or concerns, please contact Paul Bubny
- ◦Financing
