Commercial/Multifamily Mortgage Delinquencies Decline in 2021 Q3

According to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report (CMDR) that was released on Tuesday (12-7-21), the mortgage delinquency rate on these types of properties declined in 2021 Q3. The CMDR analyzes commercial/multifamily delinquency rates quarterly for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. Together, these groups hold more than 80% of commercial/multifamily mortgage debt outstanding.

In a statement prepared for the release of the Q3 CMDR, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said, “Commercial mortgage delinquency rates for every major capital source have come down since the early months of the pandemic. With low numbers of loans becoming newly delinquent, much of the declines are coming from the resolution of loans with later-stage delinquency statuses. Despite successive waves of COVID-19, the economy has shown solid growth, and it is hard to imagine a return to the extraordinary shutdowns in early 2020 that negatively impacted some sectors of commercial real estate.”