Commercial and Multifamily Mortgage Delinquency Rates Inch Higher in Q4

The Mortgage Bankers Association (MBA) reported on Tuesday (1-17-23) that according to their latest CREF Loan Performance Survey, delinquency rates for mortgages backed by commercial and multifamily properties increased modestly through 2022 Q4.

The balance of commercial and multifamily mortgages that are not current increased in December 2022 (compared to September 2022).

  • 98% of outstanding loan balances were current or less than 30 days late at the end of the fourth quarter, down from 98.3% at the end of the third quarter of 2022
  • 1.6% were 90+ days delinquent or in REO, up from 1.4% six months earlier
  • 0.1% were 60-90 days delinquent, unchanged from the previous quarter
  • 0.3% were 30-60 days delinquent, up from 0.2%

MBA’s CREF Loan Performance survey collected information on commercial and multifamily mortgage portfolios as of December 31, 2022. This month’s results build on similar surveys conducted since April 2020. Participants reported on $2.4 trillion of loans in December 2022, representing more than half of the total $4.4 trillion in commercial and multifamily mortgage debt outstanding (MDO).

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