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CRE Mortgage Delinquencies Continue to Normalize
Delinquencies for commercial and multifamily mortgages declined in the fourth quarter of 2021, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. In many sectors, they’re now back down to pre-pandemic levels.
“Commercial and multifamily mortgage performance continues to normalize, with delinquency rates down or flat for every major investor group,” said Jamie Woodwell, MBA’s VP of commercial real estate Research. “Delinquencies for some sectors appear to remain elevated for one of two reasons.
“For some, lenders and servicers continue to work-out loans that were hard hit by the pandemic,” he continued. “For others, the method of reporting may classify forborne or other loans as delinquent, even when they are back on track.”
Q4’s lowest delinquency rate was in life company portfolios at 0.04%, unchanged from the previous quarter. CMBS notched the highest at 4.02%, although the rate was down 84 basis points from Q3.
- ◦Financing
