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Home Financial News Commercial Loan Delinquency Rates Shoot to Record Highs

Commercial Loan Delinquency Rates Shoot to Record Highs

Commercial real estate mortgages held in commercial mortgage backed securities (CMBS) have skyrocketed in the past year and have reached an all time high according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report . Delinquencies in other investor groups, while up, are still well below numbers in the early 1990s. Between the fourth quarter 2009 and first quarter 2010, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) rose 1.54 percentage points from 5.70 percent to 7.24 percent. However, since the first quarter of 2009 the rate has increased nearly four-fold. Seen on a graph, the delinquency pattern over the last 12 months has a vertical trajectory, rising from 1.86 percent to the current number. The MBA report...(read more)

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