Quarterly delinquency on commercial real estate loans retreated for most investor types. Commercial mortgages owned by financial institutions matched the lowest rate in at least 24 years.
The 30-day rate of delinquency on loans included in commercial mortgage-backed securities
concluded the third quarter at 4.61 percent.
CMBS delinquency tumbled 23 basis points compared to
the preceding quarter. But the past-due rate remains worse than in the same quarter last year, when it was 4.23 percent.
The
Mortgage Bankers Association reported the performance metrics in its Commercial/Multifamily Mortgage Delinquency Rates for Major Investor Groups | Q3 2017.
Data reported Wednesday by Morningstar Credit Ratings LLC indicate that
that 30-day CMBS delinquency fell another 26 BPS between September and October.
MBA’s report had 60-day delinquency on CRE loans owned by life insurance companies at 0.02 percent, declining 2 BPS from the second quarter and 6 BPS better than the third-quarter 2016.
At Fannie Mae, 60-day multifamily delinquency dipped a basis point from three months earlier to 0.03 percent and was down 4 BPS from a year earlier.
Sixty-day multifamily delinquency at Freddie Mac ended the third-quarter 2017 at 0.02 percent, worse than 0.01 percent the prior period and a year prior. The McLean, Virginia-based firm has reported that the 60-day rate moved up another basis point in October.
On CRE loans owned by banks and thrifts, 90-day delinquency concluded the most-recent period at 0.52 percent, down 2 BPS from the second-quarter 2017 and declining 10 BPS from the third-quarter 2016.
“The delinquency rate for loans held in bank portfolios matches the lowest ever recorded in the 24 year history of the series,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in an accompanying announcement.
Woodwell added, “Strong property fundamentals and values, and ready credit availability, are all helping contribute to this extraordinary performance.”
