Delinquency rates for mortgages backed by commercial and multifamily properties increased for the second month in a row in December, according to the Mortgage Bankers Association’s (MBA) latest monthly MBA CREF Loan Performance Survey. MBA developed the survey to better understand how the pandemic is impacting commercial mortgage loan performance.
“The increase in commercial and multifamily mortgage delinquencies in December is a symptom of the economic slowdown stemming from the recent surge in COVID-19 cases,” said Jamie Woodwell, MBA’s VP of commercial real Estate Research.
Woodwell noted that the pandemic’s impact on lodging and retail properties drove a spike in delinquencies during April and May. “For several months, delinquency rates declined as the economy stabilized,” he said. But more recently, the added stress from a winter wave of the virus has weakened the economy and challenged some owners, as property income has been disrupted.”
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.
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