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CRE Delinquencies Rise for Most Lender Types: MBA
Commercial mortgage delinquencies increased in the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. All but one lender type tracked by MBA registered increases during the quarter.
”Commercial mortgage delinquency rates rose again during the fourth quarter of 2023,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Every major capital source has seen an increase over the last six months, as higher interest rates, uncertainty about property values and challenges in some property fundamentals work their way through the markets.”
Each lending group tracks delinquencies in its own way, MBA pointed out. Based on the unpaid principal balance of loans, delinquency rates for each group at the end of Q4 2023 were as follows:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 0.94%, an increase of 0.09 percentage points from Q3 2023;
- Life company portfolios (60 or more days delinquent): 0.36%, up 0.04 percentage points from Q3;
- Fannie Mae (60 or more days delinquent): 0.46%, down 0.08 percentage points from Q3;
- Freddie Mac (60 or more days delinquent): 0.28%, up 0.04 percentage points from Q3; and
- CMBS (30 or more days delinquent or in REO): 4.30%, up 0.04 percentage points from Q3.
- ◦Financing
