CRE Mortgage Delinquencies Remain Low Despite Slight Upticks in Q4
With rates ranging from a low of 0.11% for life companies to 2.90% for CMBS, commercial and multifamily mortgage delinquencies remained low in the fourth quarter of 2022, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. However, all lender groups aside from the GSEs saw slight increases during the quarter.
Based on unpaid principal balance as Q4 ended, the delinquency rates for each group were as follows:
Banks and thrift, 0.45%, up one basis point;
Life company portfolios, 0.11%, up two bps;
Fannie Mae, 0.24%, down two bps;
Freddie Mac, 0.12%, down one bp;
CMBS, 2.90%, up 13 bps.
Notwithstanding the slight upticks, “the overall performance remained positive,” said Jamie Woodwell, MBA’s head of commercial real estate research. “It is likely that as higher interest rates and softer property values work through the system this year – prompted by maturing and adjustable-rate loans – loan performance will adjust.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-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 7-10 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).