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May 2024 » thefivestar.com 63 May 2024 J O U R N A L every 4,286 properties had a foreclo- sure filing. » States with the highest foreclosure rates in March 2024 were Illinois (one in every 2,548 housing units with a foreclosure filing); Connecticut (one in 2,609); New Jersey (one in 2,638); Flor- ida (one in 2,779); and South Carolina (one in 2,867). » 23,312 U.S. properties started the fore- closure process in March 2024, up 3% from the previous month but down 4% from March 2023. » Lenders completed the foreclosure process on 2,701 U.S. properties in March 2024, down 20% from the previous month and down 44% from March 2023. COMMERCIAL, MULTIFAMILY DELINQUENCY RATES JUMPED AGAIN IN Q4 A ccording to the most recent Commercial Delinquency Re- port from the Mortgage Bankers Association (MBA), there has been an increase in commercial mortgage delin- quencies during Q4 of 2023. This comes after the commercial mortgage delinquencies increase experi- enced in Q3 of 2023, according to MBA's December survey. "Commercial mortgage delinquency rates rose again during the fourth quarter of 2023," said Jamie Woodwell, MBA's Head of Commercial Real Estate Re- search. "Every major capital source has seen an increase over the last six months, as higher interest rates, uncertainty about property values, and challenges in some property fundamentals work their way through the markets." Based on the unpaid principal bal- ance (UPB) of loans, delinquency rates for each group at the end of Q4 of 2023 were as follows: » Banks and thrifts (90 or more days delinquent or in non-accrual): 0.94%, an increase of 0.09 percentage points from Q3 of 2023. » Life company portfolios (60 or more days delinquent): 0.36%, an increase of 0.04 percentage points from Q3 of 2023. » Fannie Mae (60 or more days de- linquent): 0.46%, a decrease of 0.08 percentage points from Q3 of 2023. » Freddie Mac (60 or more days de- linquent): 0.28%, an increase of 0.04 percentage points from the Q3 of 2023. » CMBS (30 or more days delinquent or in REO): 4.30%, an increase of 0.04 percentage points from Q3 of 2023. Note: The commercial delinquen- cy rates of five of the major investor groups—commercial banks and thrifts, life insurance companies, commercial mortgage-backed securities (CMBS), and Fannie Mae and Freddie Mac—are exam- ined in the MBA's quarterly analysis. Over 80% of outstanding commercial mortgage debt is held by these entities collectively. Delinquency rates are not compara- ble between investor groups since each one tracks delinquencies differently. For instance, Freddie Mac excludes loans that comply with the terms of the forbearance agreement, but Fannie Mae counts those loans as delinquent.