Although past-due payments on commercial real estate loans for most investor types moved lower, it was securitized loans that saw the biggest improvement.
Delinquency of at least 30 days on loans included in commercial mortgage-backed securities worked out to 5.17 percent in the first quarter.
That turned out to be 19 basis points lower than the revised rate that was in place as of the fourth quarter of last year and 98 BPS better than in first quarter of last year.
The Mortgage Bankers Association, which unveiled the figures in its
Commercial/Multifamily Delinquency Report, originally reported fourth-quarter CMBS delinquency at 5.11 percent.
Since the end of March, 30-day CMBS delinquency has fallen another 18 BPS, Trepp LLC reported. That put delinquency on Trepp-rated transactions at 5.40 percent as of May 31, down from 5.57 percent a month earlier and 6.27 percent a year earlier.
Trepp noted that
delinquency on securitized lodging loans tumbled 38 BPS from April to 3.80 percent, while industrial property loan delinquency declined 33 BPS to 7.50 percent as of last month. A 30-basis-point drop left multifamily delinquency at 8.62 percent, an 18-basis-point improvement put office loan delinquency at 5.93 percent, and a two-basis-point decline left retail property loan delinquency at 5.43 percent.
At banks and thrifts, MBA said 90-day delinquency fell to 1.03 percent in the first quarter from 1.14 percent in the final quarter of last year. The rate was 1.58 percent in the same three-month period of last year.
CRE loans owned by life insurance companies had a 60-day delinquency rate of 0.06 percent, two BPS better than in the fourth quarter and one basis point worse than in the first-quarter 2014.
Multifamily loans backed by Fannie Mae had an 0.09 percent 60-day rate as of the most-recent period, deteriorating four BPS compared to three months earlier but one basis point less than 12 months earlier.
Fannie has reported that multifamily fell two BPS in April to 0.07 percent.
At Fannie’s secondary rival, Freddie Mac, 60-day multifamily delinquency dropped to 0.03 percent as of the first-quarter 2015 from 0.04 percent in the prior period and in the year-earlier period.
Freddie reported that its 60-day multifamily delinquency rate remained at 0.03 percent in April.
“Increasing property incomes, rising property values and a strong finance market are working together to push delinquency rates lower,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in the report.
