Delinquency rates held for loans held by life companies and the GSEs have also seen a significant decline as well. Delinquency rates continued to fall lower throughout the second quarter. Commercial loans saw an overall decline in delinquencies as well.
According to the analysis by the Mortgage Bankers Association, research considered the statistics and data regarding the commercial/multifamily delinquency rates for the five largest investor groups. Those groups include thrifts and commercial banks, Fannie Mae and Freddie Mac, and CMBs as well as life insurance companies. Across the board there has been a significant drop in delinquencies as far as multifamily dwellings go. Those five largest investor groups hold more than 80 percent of the commercial/multifamily mortgage outstanding debt totals when they are combined and those significant improvements in delinquencies.
As an example, the report shows that for multifamily loans held by Freddie Mac, the delinquency rate had fallen 6.72 percent points since its series high of 6.81 percent during 1992′s fourth quarter. As far as Fannie Mae goes, the delinquency rate for multifamily loans was 3.34 percentage points lower than in 1991′s fourth quarter where it was at 3.62 percent.
During this year’s second quarter, the 60-day and longer delinquency rate for commercial and multifamily mortgages that were held in life company portfolios inched down 0.01 percentage point to 0.08 percent. The 60-plus day delinquency rate for multifamily loans held or insured by Freddie Mac dropped 0.07 percentage points to 0.09 percent during that same time frame.
For multifamily loans held or insured by Fannie Mae, the 60-plus day delinquency rate dropped 0.11 percentage points to 0.28 percent. During the same time period, the 90-plus day delinquency rate for loans held by FDIC-insured banks and thrifts dropped 0.26 percentage points to 2.16 percent. Also during the same time period, the 30-plus day delinquency rate for loans that are held by CMBS dropped 0.74 percentage points to 7.81 percent.
Figures that are based solely on the unpaid principal balance of loans at the end of this year’s second quarter show that delinquency rates for 60-plus day loans for Freddie Mac set at 0.09 percent, while Fannie Mae loans had a delinquency rate at 0.28 percent.