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The Mortgage Bankers Association expects 2022 volume for commercial and multifamily mortgages to be comparable to last year

CRE Loan Delinquencies Reach Lowest Point Since Pandemic Began

Delinquency rates for mortgages backed by commercial and multifamily properties reached their lowest point since the onset of the COVID-19 pandemic, the Mortgage Bankers Association (MBA) reported. As July ended, 95.5% of outstanding loan balances were current, up 30 basis points from June. 

“Loan performance continues to be very property-type dependent, with lodging loans still the hardest hit but showing strong improvement,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Office properties saw a decline in overall delinquencies, but there was an uptick in loans that are newly delinquent. The strength of the economy should continue to support most property types in the coming months.” 

Although loans backed by lodging and retail properties continue to see the greatest stress, they showed improvement last month. Lodging loan delinquencies declined 110 bps to 16.5%, while retail late-pays declined from 10% in June to 9%. Lowest were multifamily delinquencies at 1.5%. 

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Inside The Story

MBA’s Woodwell

About Paul Bubny

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. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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