Although the rate of past-due payments on most commercial real estate loans stands near record lows, securitized CRE loan performance is worsening.
On loans that are included in commercial mortgage-backed securities, delinquency of at least 30 days was 4.53 percent as of the fourth-quarter 2016.
That turned out to be a 30-basis-point increase versus the previous quarter. But compared to the final quarter of 2015, the rate was down 20 BPS.
Those findings were reported by the Mortgage Bankers Association in its Commercial/Multifamily Mortgage Delinquency Rates for Major Investor Groups | Q4 2016.
More recently, Trepp LLC reported that
CMBS delinquency has risen another 8 BPS as of Feb. 28.
MBA Vice President of Commercial Real Estate Research Jamie Woodwell noted in an accompanying statement that while delinquency for other CRE investor groups is at or near all-time lows, “Only loans in commercial mortgage-backed securities continue to show elevated levels of delinquencies and loans in foreclosure, as the market continues to work through the large volume of mortgages made during the 2005 to 2007 time period.”
MBA reported that 60-day delinquency on CRE loans owned by life insurance companies closed out last year at 0.04 percent, improving 4 BPS from the third quarter and 2 BPS better than year-end 2015.
On Fannie Mae multifamily loans, 60-day delinquency was 0.05 percent as of Dec. 31, 2016. The rate fell from 0.07 percent three months earlier and a year earlier. Fannie has since reported that the 60-day rate was still 0.05 percent as of Jan. 31, 2017.
At rival Freddie Mac, 60-day multifamily delinquency was 0.03 percent, worsening from 0.01 percent in September 2016 and 0.02 percent in December 2015. Like Fannie, Freddie’s multifamily delinquency as of Jan. 31, 2017, was unchanged from year-end 2016.
Ninety-day commercial mortgage delinquency at banks and thrifts concluded the fourth-quarter 2016 at 0.59 percent, improving 3 BPS from the prior quarter and down 14 BPS from a year prior.
