Commercial and multifamily mortgage delinquency rates remained low for life insurance companies, as well as for Fannie Mae and Freddie Mac during the fourth quarter 2010, according to a report from the Mortgage Bankers Association (MBA).

Delinquency rates for commercial and multifamily mortgages also fell for banks and thrifts for the first time since the 2006 and rose slightly for loans held in commercial mortgage backed securities (CMBS), the report found. The delinquency rate for loans held in CMBS is the highest since the series began in 1997.

"The recession’s downward pull on commercial and multifamily mortgage performance has slackened," said Jamie Woodwell, MBA vice president of commercial real estate research. "The delinquency rates for commercial and multifamily mortgages at banks and thrifts appear to have peaked at levels well below those of the last recession, and the performance of loans held by life companies, Fannie Mae and Freddie Mac has been relatively strong throughout the downturn. The CMBS market has continued to see elevated levels of stress – although the rate of increase has moderated and some technical issues make a direct comparison of CMBS to other investor groups tricky."

Between the third and fourth quarters 2010, the 90-plus day delinquency rate on loans held by FDIC-insured banks and thrifts decreased 0.22 percentage points to 4.19 percent – the first decrease since the first quarter of 2006, according to the report. The 30-plus day delinquency rate on loans held in CMBS increased 0.37 percentage points to 8.95 percent. The 60-plus day delinquency rate on loans held in life company portfolios decreased 0.03 percentage points to 0.19 percent. The 60-plus day delinquency rate on multifamily loans held or insured by Fannie Mae increased 0.06 percentage points to 0.71 percent. The 60-plus day delinquency rate on multifamily loans held or insured by Freddie Mac decreased 0.04 percentage points to 0.31 percent.