National + Finance | December 8, 2022

Commercial mortgage delinquencies remained low in the third quarter of 2022, but the Mortgage Bankers Association cautioned that stress is expected

MBA: Commercial Mortgage Delinquencies Remain Low, But Stress May Be Ahead

Commercial and multifamily mortgage delinquencies remained low in 2022’s third quarter, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. Delinquencies ranged from 0.09% for life company mortgage loans to 2.77% for CMBS.

“The delinquency rate for mortgages backed by commercial and multifamily properties remained low at the end of the third quarter,” said Jamie Woodwell, MBA’s head of commercial real estate research. “For example, the share of bank-held CRE loan balances that were delinquent has only been lower once – just before the onset of the COVID-19 pandemic – in the series’ 30-year history.”

He added, though, “The conditions that pushed delinquency rates to these near-record lows have been shifting, and we expect to see some stress work its way back into some loans. Very slight increases during the third quarter in the delinquency rates of life company and Freddie Mac loans may signal the beginning of these trends.”

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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).