Mortgage Daily

Published On: January 5, 2018

A record-low was reported for delinquency on commercial real estate loans owned by banks. The rate on securitized CRE loans was its lowest in nearly a decade with further improvement to follow.

Thirty-day delinquency on loans that have been bundled into commercial mortgage-backed securities came to 3.52 percent in the second quarter — the lowest rate since the first quarter 2009’s upwardly revised 1.86 percent.

CMBS delinquency
was 3.93 percent as of March 31, 2018. At the mid-point of last year, the 30-day rate on securitized CRE loans was 4.84 percent.

The loan performance details were reported Tuesday by the
Mortgage Bankers Association in its Commercial/Multifamily Mortgage Delinquency Rates for Major Investor Groups | Q2 2018.

Trepp LLC reported that
CMBS delinquency has fallen another 31 basis points from June, leaving its 30-day rate at 3.64 percent as of Aug. 31.

Trepp’s rate on office CMBS loans was 4.12 percent, sinking from July by 29 BPS — the most of any property type. Multifamily delinquency fell 28 BPS to 2.07 percent, the rate on industrial property loans dropped 15 BPS to 4.06 percent, and retail delinquency decreased 8 BPS to 5.47 percent. Securitized lodging loans had a rate of 2.22 percent, off just 3 BPS.

MBA’s report had 60-day delinquency on commercial mortgages owned by life insurance companies closing out the first half at 0.03 percent, a basis point more than in the last report and a basis point less than the same point a year ago.

Delinquency of at least 60 days on Fannie Mae’s multifamily loans dipped to 0.10 percent from 0.13 percent but was much higher than 0.04 percent in the second-quarter 2017. Fannie has reported that its multifamily delinquency slipped to 0.09 percent at the end of July.

Freddie Mac’s 60-day multifamily delinquency was 0.01 percent as of mid-2018, 0.02 percent at the end of the first quarter and 0.01 percent on the same date last year. Freddie has reported that its multifamily delinquency was 0.01 percent as of July 31.

MBA reported that CRE loan delinquency of at least 90 days on bank- and thrift-owned mortgages at 0.50 percent, “the lowest in the series history,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in a written statement. Bank delinquency was 0.51 percent the preceding quarter and 0.54 percent in the second-quarter 2017.

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