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tance needed to move from the trial to the permanent modification phase. All mortgage modifications begin with a trial phase to allow borrowers to submit the necessary documentation and determine whether the modified monthly payment is sustainable for them. As the first round of modifications reaches the time to convert, the Administration has identified several strategies for addressing the challenges that borrowers confront in receiving permanent modifications. For more information, visit www.MakingHomeAffordable.gov.
for each group at the end of the third quarter were as follows: O CMBS: 4.06 percent (30-plus days delinquent or in real-estate owned); O Life company portfolios: 0.23 percent (60-plus days delinquent); O Fannie Mae: 0.62 percent (60 or more days delinquent); O Freddie Mac: 0.11 percent (90 or more days delinquent); and O Banks and thrifts: 3.43 percent (90 or more days delinquent or in non-accrual).
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. The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. For more information, visit www.mortgagebankers.org.
Government releases new data on modification program The Obama Administration has released the latest report for the Making Home Affordable (MHA) loan modification program. As part of an ongoing commitment to transparency, the report includes, for the first time, the number of modifications that have transitioned from the trial phase to permanent phase, as well as a breakout of the 15 metropolitan areas with the highest program activity. With more than continued on page 29
MBA report shows Q3 ’09 commercial and multifamily performance dropping
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MISSOURI MORTGAGE PROFESSIONAL MAGAZINE
www.NationalMortgageProfessional.com O O JANUARY 2010
Delinquency rates continued to increase in the third quarter for most commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. “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.” Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of “commercial real estate” despite the fact that they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers or other income-producing properties. Between the second and third quarters, the 30-plus day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) rose 0.17 percentage points to 4.06 percent. The 60-plus day delinquency rate on loans held in life company portfolios rose 0.08 percentage points to 0.23 percent. The 60-plus day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.11 percentage points to 0.62 percent. The 90-plus day delinquency rate on multifamily loans held or insured by Freddie Mac remained unchanged at 0.11 percent. The 90-plus day delinquency rate on loans held by Federal Deposit Insurance Corporation (FDIC)insured banks and thrifts rose 0.51 percentage points to 3.43 percent. Based on the unpaid principal balance of loans (UPB), delinquency rates
Published on Jan 29, 2010