Commercial/Mutlifamily Delinquencies at Record Lows

The commercial/multifamily delinquency rates ended 2007 at or near record lows for most major investor groups, according to an inaugural analysis released by the Mortgage Bankers Association. Four of the major investment groups –commercial mortgage-backed securities, life companies, Fannie Mae and Freddie Mac — were at or near historically low levels, according to the MBA study. The delinquency rates for the fifth investment group, FDIC-insured commercial banks and thrifts, were lower at year-end than 10 of the previous 16 years. These five investor groups hold more than 80% of commercial/multifamily debt outstanding, according to the MBA. “This is an important new analysis that helps cut through much of the recent ‘noise’ on commercial real estate finance,” Steve Graves, managing director & Chief Operating Officer of Principal Real Estate Investors and chair of the MBA’s Commercial Board of Governors, said in a statement said.