MBA Chart of the Week Commercial/Multifamily Delinquency Rates, Range Since 1996

For most capital sources, commercial and multifamily mortgage delinquency rates are near the lowest levels seen during the past 20 years, according to the Mortgage Bankers Association’s Commercial/Multifamily Delinquency Report (https://www.mba.org/2016-press-releases/august/commercial/multifamily-delinquencies-remain-low-in-second-quarter).  

Commercial and multifamily delinquency rates are measured differently by each investor group. While these differences mean one cannot compare one investor group to another, the data help us see where delinquency rates are now compared to where they have been historically for each group. And with today’s strong property fundamentals, rising property values and solid mortgage availability, loan performance for most investor groups is as strong as it has been in more than 20 years.  

Delinquency rates reported in the commercial mortgage-backed securities market include loans in foreclosure and REO, while other groups do not. CMBS delinquency rates also include loans 30 or more days delinquent, while the government-sponsored enterprises and life companies track loans 60 or more days delinquent and bank loans are considered non-current when they are 90 or more days late.  

NOTE: Delinquency rates shown are NOT comparable between investor groups. These rates show how performance of loans for each investor groups has varied over time, but cannot be used to compare one investor group to another. Sources: Wells Fargo Securities LLC and Intex Solutions Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, the Office of Federal Housing Enterprise Oversight and the Federal Deposit Insurance Corp.  

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at jwoodwell@mba.org. Reggie Booker is associate director of commercial/multifamily research with MBA; he can be reached at rbooker@mba.org.)