CRE, Multifamily Mortgages End 2017 Strong

The market tailwinds of strong fundamentals, increasing property values and ready access to mortgage and other credit all put downward pressure on delinquency rates, according to an MBA analysis.
Note: Data show selected delinquency rates at the end of a 60-day period. Sources: Wells Fargo Securities LLC; Intex Solutions Inc.; American Council of Life Insurers; Federal Desposit Insurance Corp.
Note: Data show selected delinquency rates at the end of a 60-day period. Sources: Wells Fargo Securities LLC; Intex Solutions Inc.; American Council of Life Insurers; Federal Desposit Insurance Corp. Courtesy of Mortgage Bankers Association

Commercial and multifamily mortgages ended 2017 continuing to perform extraordinarily well. The market tailwinds of strong fundamentals, increasing property values and ready access to mortgage and other credit all put downward pressure on delinquency rates. The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac. Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding. Out of more than 33,000 commercial and multifamily mortgages held on the books of life insurance companies, only 17 were reported as delinquent at the end of 2017.

— Jamie Woodwell, MBA Vice President of Commercial Real Estate Research