Commercial and Multifamily Mortgage Delinquency Rates Declined Slightly in September

According to the latest Mortgage Banker Association’s CREF Loan Performance Survey, which was developed to better understand the ways the COVID-19 pandemic is impacting commercial loan performance, delinquency rates for mortgages backed by commercial and multifamily properties declined slightly in September. The survey indicated that 96.7% of outstanding loan balances were current, up from 96.6% in August 2021.

2.2% were 90+ days delinquent or in REO, unchanged from a month earlier. 0.2% were 60-90 days delinquent, unchanged from a month earlier. 0.3% were 30-60 days delinquent, unchanged from a month earlier.

In remarks prepared for the release of the CREF Survey, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said, “Commercial and multifamily mortgage performance has improved considerably since the worst of the downturn. The stress that entered — and remains — in the market is largely concentrated in lodging and retail properties, but with fewer new loans becoming delinquent, and shrinking balances of overall delinquency as lenders and servicers work out the longer-term troubled loans.”