Despite Drop in CRE Loan Delinquency, CMBS Worse

The rate of 30-day delinquency on loans included in commercial mortgage-backed securities concluded the third quarter at 4.23 percent.

Compared to three months earlier, the 30-day rate worsened 19 basis points. The past-due rate improved, however, 61 BPS from a year earlier.

The Mortgage Bankers Association provided those details in its Commercial/Multifamily Mortgage Delinquency Rates for Major Investor Groups | Q3 2016.

Data reported by Trepp LLC indicate that the CMBS 30-day rate has deteriorated another 25 BPS from the end of September through the end of November.

MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in an accompanying statement that deterioration in CMBS loan performance was “largely driven by the fact that many of the stronger loans that are set to mature in 2016 and 2017 are paying off, reducing the denominator and leaving behind weaker loans. This trend is likely to continue for the next few quarters.”

Sixty-day delinquency on Fannie Mae multifamily loans was 0.07 percent as of the most-recent date, the same as of June 30, 2016, and 2 BPS higher than as of Sept. 30, 2015.

Washington-based Fannie reported that its multifamily rate slipped to 0.06 percent as of Oct. 31, 2016.

At Fannie’s secondary rival, Freddie Mac, 60-day multifamily delinquency fell to 0.01 percent at the end of September 2016 from 0.02 percent three months earlier. There was no change, however, from a year earlier.

Multifamily delinquency at McLean, Virginia-based Freddie finished October 2016
at 0.01 percent, according to its Monthly Volume Summary: October 2016.

On CRE loans owned by life insurance companies, MBA reported that 60-day delinquency fell to 0.08 percent from 0.11 percent as of mid-2016. But life insurer CRE delinquency worsened by 4 BPS versus the third-quarter 2015.