Commercial and Multifamily Mortgage Delinquencies Hold Steady in June

According to Mortgage Bankers Association’s (MBA) latest monthly CREF Loan Performance Survey, the delinquency rates for mortgages backed by commercial and multifamily properties held steady in June. The MBA developed the survey to better understand the ways the COVID-19 pandemic is impacting commercial mortgage loan performance. The survey reveals that 95.2% of outstanding loan balances were current, unchanged from May. 3.0% were 90+ days delinquent or in REO, down from 3.1% a month earlier. 0.2% were 60-90 days delinquent, unchanged from a month earlier. 0.6% were 30-60 days delinquent, up from 0.5% a month earlier. 1.1% were less than 30 days delinquent, up from 1.0% a month earlier.

In remarks prepared for the survey, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, said, “Commercial and multifamily mortgage delinquencies continue to be driven by loans backed by hotel and retail properties that ran into trouble during the pandemic and are now more than 90 days late. We expect these late-stage delinquencies to wane as the economy continues to open and there is less uncertainty surrounding the prospects of these and many other property types.”