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Commercial, Multifamily Mortgage Delinquencies in U.S. Remain Low in 2018

Commercial, Multifamily Mortgage Delinquencies in U.S. Remain Low in 2018


According to the Mortgage Bankers Association's latest Commercial/Multifamily Delinquency Report, delinquency rates for U.S. commercial and multifamily mortgage loans were relatively flat in the first quarter of 2018.

"Mortgages backed by commercial and multifamily properties continue to perform extremely well," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.  "Delinquency rates are at or near their all-time lows across most capital sources. This continues to be driven by strong property fundamentals, increasing property values, still-low mortgage rates and readily available financing."

The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac.  Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the first quarter were as follows:

  • Banks and thrifts (90 or more days delinquent or in non-accrual): 0.51 percent, unchanged from the fourth quarter of 2017;
  • Life company portfolios (60 or more days delinquent): 0.02 percent, a decrease of 0.01 percentage points from the fourth quarter of 2017;
  • Fannie Mae (60 or more days delinquent): 0.13 percent, an increase of 0.02 percentage points from the fourth quarter of 2017;
  • Freddie Mac (60 or more days delinquent): 0.02 percent, unchanged from the fourth quarter of 2017;
  • CMBS (30 or more days delinquent or in REO): 3.93 percent, a decrease of 0.15 percentage points from the fourth quarter of 2017;

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