Multi-Family/Commercial Delinquency Rates Show Improvement in Q4

by devteam March 8th, 2013 | Share

Commercial and multi-family delinquency rates</bof 60+ days decreased in the fourth quarter for all five major investor groups thatrnhold the loans, but were up on an annual basis for loans held in CMBS and byrnBanks and Thrifts. The Mortgage Bankers Association (MBA) said that several ofrnthe rates were cut in half compared to the fourth quarter of 2011.</p

During the fourth quarter of 2012 thern60+ day delinquency rate for loans held in life company portfolios decreased torn0.8 percent from 0.12 percent in the third quarter and from 0.17 percent in thernfourth quarter of 2012.  Loans held orrninsured by Freddie Mac dropped from 0.12 percent in the third quarter and 0.17rnpercent at the end of 2011 to 0.08 percent. rnFannie Mae saw similar improvement with its rate down from 0.28 percentrnin the third quarter to 0.24 percent, less than half the 0.59 percent rate onernyear earlier.</p

Commercial and multi-family loans heldrnby FDIC insured banks and thrifts had a 60+ day delinquency rate of 2.62rnpercent at the end of the fourth quarter of 2012.  This was down from 2.94 percent at the end ofrnthe third quarter but was an increase of 4 basis points from the Q4 2011rnrate.  Loans held in CMBS were down 13rnbasis points from the third quarter to 8.73 percent which was an increase fromrnthe 8.56 percent recorded one year earlier.</p

The five investor groups together holdrnmore than 80 percent of outstanding commercial/multifamily mortgage debt.   MBArnsaid that because each investor group tracks delinquencies in its own way,rngroup to group comparisons are not appropriate.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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