Commercial MBS Delinquencies Rise in Third Quarter

by devteam December 7th, 2009 | Share

While residential foreclosures get most of the publicity, delinquencyrnrates for mortgages in the commercial sector are also rising according to datarnreleased today by the Mortgage Bankers Association (MBA).

MBA's Commercial/Multifamily Delinquency Report tracks commercialrndelinquencies among five investor groups, each of which reports its delinquenciesrnin its own way.  Therefore, rates are notrncomparable from group to group. 

During the third quarter the 30+ day delinquency rate for loans held inrncommercial mortgage-backed securities (CMBS) rose .17 percentage points to 4.06rnpercent during the quarter.  Mortgagesrnheld by life insurance companies that are 60 or more days delinquent were uprn0.08 percentage points to 0.23 percent and the 60+ day rate on multifamilyrnloans in Fannie Mae's portfolio increased by 0.11 percentage points to 0.62rnpercent.  Mortgages in FDIC-insured banksrnand thrifts were up 0.51 basis points to 3.43 percent and multi-family loansrnheld by Freddie Mac were unchanged from the second quarter at 0.11 percent.

The CMBS figures include mortgages in foreclosure and are the only onesrnto include real estate owned in both the numerator and denominator of therncomputation.  CMBS loans include all “privaternlabel” non-Ginnie Mae, Fannie Mae, and Freddie Mac issued loans that arerncurrently outstanding.  Life Insurance, FanniernMae and Freddie Mac owned loans include those in foreclosure.  The FDIC loans also include foreclosures and haverna large number of “owner occupied” commercial loans in which the loan isrnsupported by the income of the resident business rather than through rentals.  None of the figures in the Association's reportrninclude construction and development loans.

“Commercial and multifamily mortgages continued to feel stress inrnthe face of the weakened economy,” said Jamie Woodwell, MBA's VicernPresident of Commercial Real Estate Research.  “The deterioration inrncommercial and multifamily loan performance is generally in line with what isrnbeing seen in other parts of the economy, with loans backed by commercialrnproperties continuing to perform far better than construction and developmentrnloans.”

The increases in several portfolios since the end of the second quarterrnare significant, however, the impact of the current problems become morernapparent if the third quarter results are measured year over year.  Here are the comparisons for each of thernportfolios current delinquency rates with those reported at the end of thernthird quarter of 2008.


Q3 – 2008

Q3 – 2009

CMBS (30+ days & REO)



Life Insurance Companies (60+rn days)



Fannie Mae (60+ days)



Freddie Mac (90+ days)



Banks & Thrifts (90+ days)

1.38 %


All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...