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MBA: CRE Loan Delinquencies Saw Decline in Q4
Delinquency rates for mortgages backed by commercial and multifamily properties declined during the final three months of 2021, according to the Mortgage Bankers Association’s (MBA) latest CREF Loan Performance Survey.
By lender type, 5.7% of CMBS loan balances were non-current in Q4, down from 7.2% in Q3. Non-current rates for other capital sources were more moderate: 2.2% of FHA multifamily and health care loan balances were non-current, up slightly from Q3; 1.6% of life company loan balances were non-current, up from 1.2% three months earlier; and 0.6% of GSE loan balances were non-current, unchanged from three months earlier.
“The fourth quarter saw continued improvement in the performance of commercial and multifamily mortgages, particularly among property types that were the most impacted by the downturn,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “The share of outstanding balances that are delinquent fell for both lodging and retail properties, as property owners and lenders and servicers continue to work through troubled deals. The share of loan balances becoming newly delinquent was the lowest since the onset of the pandemic.”
- ◦Financing
