Commercial Mortgage Delinquencies Mixed Across Investor Types


The Mortgage Bankers Association (MBA)
reports that, in the third quarter of 2011, delinquencies among commercial and
multifamily mortgages
were mixed, with rates for loans held by some investors declining
while delinquencies among loans held by others improved.  While changes from quarter to quarter were
modest, loans held by life insurance companies and by Freddie Mac and Fannie
Mae ticked up slightly while those held by banks or in commercial
mortgages-backed securities (CMBS) were down.

Delinquencies among commercial and
multi-family loans held by FDIC-insured banks and thrifts decreased 0.19
percent to 3.75 percent and those held in CMBS were down from 9.02 percent to
8.92 percent.  The rate increased 0.07
percent to 0.19 percent for loans held by life insurance companies while the
rate for loans held by Fannie Mae rose from 0.46 percent to 0.57 percent from
Q2 to Q3 and Freddie Mac loans increased from 0.31 to 0.33 percent.

The delinquency rates in the third
quarter for mortgages held by banks and thrifts was 2.83 percentage points
lower than the record high of 6.58 percent reached in the second quarter of
1991 and the rate for life insurance-owned loans was 7.34 points lower than the
series high of 7.53 percent in the second quarter of 1992.  Loans held by the government sponsored
enterprises (GSEs) Fannie Mae and Freddie Mac were 3.05 points and 6.48 points
below their respective peaks in the fourth quarter of 2001 and the fourth
quarter of 2002.  Loans held in CMBS are
down 0.10 percentage points from the high of 9.02 percent established just last

Delinquency rates are not comparable
across investor types because of different methods of calculation.  Rates for loans held by life insurance
companies and the two GSEs are based on delinquencies of 60 or more days.  The term is applied to CMBS loans which are
30+ days delinquent or are bank owned real estate, and to loans held by banks
and thrifts that are 90 plus days in arrears or in non-accrual.

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