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Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.Commercial Loan Delinquency Rates Shoot to Record Highs
Commercial real estate mortgages held in
commercial mortgage backed securities (CMBS) have skyrocketed in the past year
and have reached an all time high according to the Mortgage Bankers
Association's (MBA) Commercial/Multifamily Delinquency Report. Delinquencies in other investor groups, while
up, are still well below numbers in the early 1990s.
Between
the fourth quarter 2009 and first quarter 2010, the 30+ day delinquency rate on
loans held in commercial mortgage-backed securities (CMBS)
rose 1.54 percentage points from 5.70 percent to 7.24 percent. However, since the first quarter of 2009 the
rate has increased nearly four-fold. Seen on a graph, the delinquency pattern over
the last 12 months has a vertical trajectory, rising from 1.86 percent to the
current number.
The MBA
report looks at the commercial and multi-family delinquency rates in the five
largest investor groups; commercial banks and thrifts, CMBS, life insurance
companies, Freddie Mac, and Fannie Mae.
More than 80 percent of all outstanding commercial and multifamily
mortgages are held by members of these five groups. Because each group has a different
composition of loans in its portfolio and tracks delinquencies in its own way,
comparisons cannot be made from group to group.
Since the
fourth quarter of 2009, the 60+ day delinquency rate on loans held in life
company portfolios increased 0.12 percentage points to 0.31 percent and the 60+
day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.16 percentage points to 0.79 percent. The 60+ day
delinquency rate on multifamily loans held or insured by Freddie Mac increased
0.05 percentage points to 0.24 percent. The 90+ day delinquency rate on
loans held by FDIC-insured banks and thrifts rose 0.32 percentage points to
4.24 percent.
"Weakness
in the economy has continued to weigh on commercial properties, which in turn
weighs on the mortgages they back," said Jamie Woodwell, MBA's Vice
President of Commercial Real Estate
Research. "Economic growth,
specifically in areas of jobs and consumer spending, will be key to stabilizing
the commercial property and mortgage markets going
forward."
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This email was sent to you by:
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Mortgage News Daily
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Anonymous Anonymous |
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Message:
YOUR MESSAGE HERE
Commercial Loan Delinquency Rates Shoot to Record Highs
Commercial real estate mortgages held in
commercial mortgage backed securities (CMBS) have skyrocketed in the past year
and have reached an all time high according to the Mortgage Bankers
Association's (MBA) Commercial/Multifamily Delinquency Report. Delinquencies in other investor groups, while
up, are still well below numbers in the early 1990s.
Between
the fourth quarter 2009 and first quarter 2010, the 30+ day delinquency rate on
loans held in commercial mortgage-backed securities (CMBS)
rose 1.54 percentage points from 5.70 percent to 7.24 percent. However, since the first quarter of 2009 the
rate has increased nearly four-fold. Seen on a graph, the delinquency pattern over
the last 12 months has a vertical trajectory, rising from 1.86 percent to the
current number.
The MBA
report looks at the commercial and multi-family delinquency rates in the five
largest investor groups; commercial banks and thrifts, CMBS, life insurance
companies, Freddie Mac, and Fannie Mae.
More than 80 percent of all outstanding commercial and multifamily
mortgages are held by members of these five groups. Because each group has a different
composition of loans in its portfolio and tracks delinquencies in its own way,
comparisons cannot be made from group to group.
Since the
fourth quarter of 2009, the 60+ day delinquency rate on loans held in life
company portfolios increased 0.12 percentage points to 0.31 percent and the 60+
day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.16 percentage points to 0.79 percent. The 60+ day
delinquency rate on multifamily loans held or insured by Freddie Mac increased
0.05 percentage points to 0.24 percent. The 90+ day delinquency rate on
loans held by FDIC-insured banks and thrifts rose 0.32 percentage points to
4.24 percent.
"Weakness
in the economy has continued to weigh on commercial properties, which in turn
weighs on the mortgages they back," said Jamie Woodwell, MBA's Vice
President of Commercial Real Estate
Research. "Economic growth,
specifically in areas of jobs and consumer spending, will be key to stabilizing
the commercial property and mortgage markets going
forward."
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