Mortgage Loan Delinquencies Decline in the Commercial/Multifamily Sector in Q1 of 2022

On Tuesday (5-31-22), the Mortgage Bankers Association (MBA) released its Commercial/Multifamily Delinquency Report for Q1 of 2022. The report revealed that mortgage loan delinquencies in this sector declined in Q1 of 2022.

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 percent 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 a statement prepared for the release of the quarterly report, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, said:

“Commercial and multifamily mortgage delinquency rates that were elevated by the onset of the COVID-19 pandemic continued to come down during the first quarter of 2022. Given the strength in market fundamentals and valuations for most property types, delinquency rates are at the lower end of their historical range for most major capital sources.”