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CRE Delinquency Rates on the Decline
Delinquency rates for mortgages backed by commercial and multifamily properties declined in September, according to the Mortgage Bankers Association’s (MBA) latest monthly MBA CREF Loan Performance Survey. The percentage of current loans rose from 93.6% in August to 94.3% in September, although lodging and retail delinquency rates remain elevated.
“Commercial and multifamily mortgage performance has stabilized, and in many cases, has begun to slowly improve since the initial stress of April and May,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Lodging and retail properties felt the onset of the recession most immediately and dramatically, and that continues to show in the numbers. Delinquency rates remain more muted among other property types and overall, the inflow of newly delinquent loans has slowed to one-fourth the rate seen in April.”
The survey was developed to better understand how the pandemic is, and isn’t, impacting commercial mortgage loan performance.
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- ◦Financing
