Delinquency rates for mortgages backed by commercial and multifamily properties decreased for the third consecutive month in March, reaching the lowest level since the pandemic began, according to the Mortgage Bankers Association’s (MBA) latest monthly CREF Loan Performance Survey.
Loans backed by lodging and retail properties continue to see the greatest stress, especially lodging. However, delinquencies in both property types improved during March.
“There continues to be significant differences in loan performance by property type,” said Jamie Woodwell, MBA’s VP of commercial real estate research.
The same applies for lender type, with CMBS—which has a high concentration of retail and hotel loans—experiencing a higher delinquency rate than other lending classes. For March, 8.7% of CMBS loans were delinquent, down from 9.3% in February.
In comparison, the March delinquency rate for GSE loans was 1.2%. MBA said 1.6% of life company loan balances were non-current, down from 2.0%.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
Email the Author
Reach over 250,000 Commercial Real Estate Professionals with Connect
Connect CRE reaches the top commercial real estate players nationwide and across all property types, offering you a variety of ways to showcase your team, your expertise and your brand to CRE decision makers.
The home for CRE news and everything you need to stay informed on deals, trends, and transactions, providing a platform to get your brand in front of your target audience.
Daily CRE Emails
Reaching over 150,000 inboxes across the nation every day, Connect’s Daily News emails provide advertising opportunities specific to your market.
Bi-Weekly Property Sector Emails
Focus your advertising on emails dedicated to your property sector and stay visible to current and potential clients.
Position your team as experts in your field with content created by Connect’s editorial team and published on Connect’s news emails. Showcase your intelligence and broaden your reach.