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Commercial Delinquencies Remain Low in Second Quarter

Commercial Mortgage
Posted on 
September 6, 2016

Delinquency rates for commercial and multifamily mortgage loans have remained low in the second quarter of 2016, according to the Mortgage Bankers Association’s Commercial/Multifamily Delinquency Report.

“For most capital sources, commercial and multifamily mortgage delinquency rates are near the lowest levels seen during the past 20 years,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Strong property fundamentals, rising property values and solid mortgage availability are all supporting these rates.”

MBA’s report analyzes commercial and multifamily delinquency rates for five of the largest investor groups. These include commercial mortgage-backed securities (CMBS), life insurance companies, commercial banks and thrifts, Fannie Mae and Freddie Mac.

Of the five largest investor groups, only two experienced any rise in delinquencies: Fannie Mae, with an increase of 0.01 percentage points from the first quarter to 0.07%, and CMBS, with an increase of 0.17 percentage points to a rate of 4.04%. All other investor groups analyzed experienced decreases.

These delinquency rates indicate that commercial property owners are continuing to do well and make their payments in today’s market. Given that there is still some uncertainty in the residential real estate market, now is a great time for mortgage brokers to consider expanding their product offerings and closing commercial mortgage loans.


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