Mortgage Delinquency Rates on Commercial/Multifamily Mortgages Near Pre-Pandemic Levels in Q4 2021

The Mortgage Bankers Association (MBA) announced today (3-21-22) the results of their latest Commercial/Multifamily Delinquency report. According to the report, commercial and multifamily mortgage delinquencies declined in Q4 2021.

MBA’s quarterly analysis looks at commercial/multifamily delinquency rates 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.

MBA’s analysis incorporates the measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. As just one example, Fannie Mae reports loans receiving payment forbearance as delinquent, while Freddie Mac excludes those loans if the borrower is in compliance with the forbearance agreement.

In remarks prepared for today’s Q4 commercial and multifamily mortgage delinquency report release, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said:

“Commercial and multifamily mortgage performance continues to normalize, with delinquency rates down or flat for every major investor group. Delinquencies for some sectors appear to remain elevated for one of two reasons. For some, lenders and servicers continue to work-out loans that were hard hit by the pandemic. For others, the method of reporting may classify forborne or other loans as delinquent, even when they are back on track. Delinquency rates are back down to at or near their pre-pandemic levels in the other sectors.”