Most investors types saw quarterly improvement in commercial real estate loan performance, with securitized loans making the most headway.
Loans included in commercial mortgage-backed securities had a 30-day delinquency rate of 6.16 percent in the first quarter of this year.
CMBS 30-day loan delinquency has not been this low since the fourth-quarter 2009, when the rate was 5.70 percent.
The rate improved by 69 basis points compared to the final quarter of last year. The fourth-quarter rate was revised down from 6.97 percent originally reported.
The Mortgage Bankers Association of America reported the statistics in its first-quarter 2014 Mortgage Delinquency Rates for Major Investor Groups report released Tuesday.
“The last two quarters marked the largest percentage point declines in CMBS delinquency rates ever,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in the report.
In the first-quarter 2013, CMBS delinquency was 8.50 percent. MBA originally reported the year-earlier figure at 8.55 percent.
A separate report from Trepp LLC indicates that 30-day CMBS delinquency as of the end of May dropped another 27 basis points from the end of March.
The next best performance was turned in by banks and thrifts, with 90-day delinquency falling to 1.57 percent as of the first quarter of this year from 1.70 percent in the fourth-quarter 2013, MBA said. The rate was 2.43 percent in the first-quarter 2013.
CRE loan performance at financial institutions was last this good in the third quarter of 2008, when the rate was 1.39 percent.
Sixty-day multifamily delinquency at Freddie Mac fell to 0.04 percent from 0.09 percent as of Dec. 31, 2013, and 0.16 percent as of March 31, 2013.
Freddie has since reported that its multifamily delinquency rate was 0.05 percent as of April.
At rival Fannie Mae, 60-day multifamily delinquency was unchanged from the fourth quarter at 0.10 percent, according to the MBA. Fannie’s multifamily rate was way down from 0.39 percent as of March 31, 2013.
Washington, D.C.-based Fannie has since reported April apartment loan delinquency of 0.11 percent.
No change in 60-day CRE delinquency at life insurance companies left the rate at 0.05 percent. A year earlier, life insurers had a 60-day rate of 0.09 percent.
