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Commercial Mortgage Delinquencies Decline for Third Straight Month
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%.
