The Mortgage Bankers Association reported last week that delinquency’s for conventional commercial mortgage bank loans have declined. The reported stated that 90 day late delinquency’s dropped by .34% in the second quarter of 2012 bringing the overall delinquency rate, in this sector down, to 3.11%.
The report also looked at delinquency rates for the other main category’s of commercial mortgages, including CMBS loans, commercial banks and thrifts, life insurance companies, Fannie Mae and Freddie Mac. Combined, these 5 category’s hold more than 80 percent of the commercial/multifamily mortgage debt outstanding.
Delinquency rates for each group at the end of the second quarter were as follows:
• Life company portfolios: 0.15 percent (60 or more delinquent);
• Freddie Mac: 0.27 percent (60 or more days delinquent);
• Fannie Mae: 0.29 percent (60 or more days delinquent);
• Banks and thrifts: 3.11 percent (90 or more days delinquent or in non-accrual);
• CMBS: 8.97 percent (30 or more days delinquent or in REO).
This report seem to contradict another recent delinquency report regarding CMBS loans that was issued by Bloomberg. That reported showed that the CMBS sector is showing signs of improvement. To view the MBA report, please visit here.