According to the Mortgage Bankers Association's (MBA) Q3 2009 Commercial/Multifamily Mortgage Delinquency Rates report delinquency rates continued to increase for most commercial mortgage investor groups. "Commercial and multifamily mortgages continued to feel stress in the face of the weakened economy," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The deterioration in commercial and multifamily loan performance is generally in line with what is being seen in other parts of the economy, with loans backed by commercial properties continuing to perform far better than construction and development loans."
Based on the unpaid principal balance of loans (UPB), delinquency rates for each group at the end of the third quarter were as follows:
- CMBS: 4.06 percent (30+ days delinquent or in REO);
- Life company portfolios: 0.23 percent (60+days delinquent);
- Fannie Mae: 0.62 percent (60 or more days delinquent)
- Freddie Mac: 0.11 percent (90 or more days delinquent);
- Banks and thrifts: 3.43 percent (90 or more days delinquent or in non-accrual).
"The market is going to take a hit on the CMBS side, and the mutual funds and insurance companies are going to have some good opportunities in 2010," said Carla Gazzola, executive vice president with Santa Ana, CA-based RiverRock Real Estate Group in a CoStar article. "Not everyone will like the price, but properties are going to start trading. The pipeline of money that's available is stunning."
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