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MBA Reports Low Q4 Delinquencies, Banks Lowest on Record
Delinquency rates for commercial and multifamily mortgage loans were relatively flat in the fourth quarter of 2017, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. The report looked at a group that holds 80% of outstanding commercial/multifamily mortgage debt.
MBA’s Jamie Woodwell says, “Commercial and multifamily mortgages ended 2017 continuing to perform extraordinarily well. The market tailwinds of strong fundamentals, increasing property values and ready access to mortgage and other credit all put downward pressure on delinquency rates.”
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of Q4 were:
– Banks and thrifts (90 or more days delinquent or in non-accrual): 0.51%, a decrease of 0.02 percentage points from the third quarter of 2017
– Life company portfolios (60 or more days delinquent): 0.03%, an increase of 0.01 percentage points from the third quarter of 2017
– Fannie Mae (60 or more days delinquent): 0.11%, an increase of 0.08 percentage points from the third quarter of 2017
– Freddie Mac (60 or more days delinquent): 0.02%, unchanged from the third quarter of 2017
– CMBS (30 or more days delinquent or in REO): 4.08%, a decrease of 0.52 percentage points from the third quarter of 2017
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