They continue to fall after spiking at the onset of the pandemic
The latest commercial/multifamily delinquency report published by the Mortgage Bankers Association (MBA) has revealed a decline in commercial and multifamily mortgage delinquencies in the first quarter of 2022.
MBA’s quarterly analysis looks at commercial and multifamily delinquency rates commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac – five of the largest investor-groups which, together, hold more than 80% of outstanding commercial/multifamily mortgage debt.
Based on the UPB of loans, banks and thrifts – which track delinquency as 90 or more days delinquent or in non-accrual – reported a 0.56% delinquency rate, three basis points below the previous quarter.
Life company portfolios (60 or more days delinquent) reported a 0.05% delinquency rate, up by one basis point from the previous quarter. Fannie Mae (60 or more days delinquent) had a rate of 0.38%, four basis points down from the last quarter, while Freddie Mac (60 or more days delinquent) maintained its delinquency rate of 0.08%. CMBS (30 or more days delinquent or in REO) reported a delinquency rate of 3.36%, 0.66% below the last quarter.
“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,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “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.”
Construction and development loans were generally not included in the numbers presented in the report.
