Dennis Norman
The Mortgage Bankers Association (MBA) released its report on the performance of commercial and multifamily mortgages in the fourth quarter of 2009. Their last report from a year ago showed that commercial and multifamily mortgages were among the best performing loans held by banks and thrifts. Now, a year later, the data still looks good and shows that commercial and multifamily mortgages continue to have the lowest charge off rate of all loan types at banks and thrifts and also perform better than their overall portfolios as well.
This is good news for an already-struggling banking industry, especially since, according to the MBA report, commercial and multifamily loans together account for 35 percent of all bank loan holdings (residential loans, including 1 to 4 families, make up 26 percent of the bank loan holdings).
Highlights from the report (all data is as of end of fourth quarter, 2009):
- Mortgage Delinquency –
- 7.30 percent of all loans and leases held by banks and thrifts were 30 or more days past due.
- 5.06 percent of commercial mortgages were 30 or more days past due.
- 5.64 percent of multifamily mortgages were 30 or more days past due.
- 4.39 percent of commercial and industrial loans were 30+ days past due.
- Construction loans had the highest delinquency rate at 18.56 percent 30+ days past due, followed next by single-family mortgages at 12.49 percent.
- Surprisingly (at least to me) credit card delinquency rates were about half that of single-family mortgages at 6.28 percent.
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