After declining to the lowest level in over seven years, delinquency on securitized commercial real estate loans increased. CRE delinquency at life insurers also worsened.
As of the second-quarter 2016,
delinquency of at least 30 days, including real estate owned, was 4.04 percent on loans included in commercial mortgage-backed securities.
Thirty-day delinquency on CMBS loans deteriorated 17 basis points compared to the first quarter of this year, when the rate came in at a downwardly revised 3.87 percent.
Based on historical data from the Mortgage Bankers Association, which delivered the latest details in its Commercial/Multifamily Mortgage Delinquency Rates for Major Investor Groups | Q2 2016, the revised first-quarter rate was the lowest since the first-quarter 2009 — when it came in at 1.85 percent.
CMBS delinquency was 4.99 percent in the second-quarter 2015.
Data reported by Trepp LLC indicate that 30-day CMBS delinquency deteriorated another 16 basis points between the end of June 2016 and the end of July.
The recent increase in CMBS delinquency has been attributed to balloon payment defaults on loans that were originated in 2006.
The 60-day delinquency rate on CRE loans owned by life insurance companies
was 0.11 percent in MBA’s report — the highest it’s been since the third-quarter 2012’s 0.12 percent.
Life insurance delinquency was
0.06 percent as of March 31, 2016, and 0.04 percent as of June 30, 2015.
Sixty-day delinquency on Fannie Mae multifamily loans closed out the first-half 2016 at 0.07 percent, rising a basis point from the end of March and 2 BPS worse than mid-2015.
Fannie reported last month that its 60-day multifamily rate
has deteriorated further — climbing to 0.08 percent as of July 31.
Over at its secondary cousin Freddie Mac, 60-day multifamily delinquency fell to 0.02 percent as of June 30, 2016, from 0.04 percent at the close of the first quarter but was up from 0.01 percent at the same point last year.
Freddie reported that its 60-day multifamily rate was unchanged at 0.02 percent as of July 31, 2016.
MBA’s report indicated that commercial mortgages owned by banks and thrifts had a 90-day delinquency rate of 0.66 percent as of mid-2016, improving by 7 BPS from three months earlier and 24 BPS better than 12 months earlier.
