According to the Mortgage Bankers Association's latest monthly CREF Loan Performance Survey, delinquency rates for U.S. mortgages backed by commercial and multifamily properties decreased again in April 2021, reaching the lowest level since the onset of the COVID-19 pandemic. The survey was developed to better understand the ways the COVID-19 pandemic is impacting commercial mortgage loan performance.
"Commercial and multifamily mortgage delinquency rates declined in April but remain elevated overall, driven by the ongoing challenges facing many hotel and retail properties," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "New and early-stage delinquencies have fallen significantly from earlier in the pandemic, but later-stage delinquency rates have stayed high, as lenders and servicers work through the options for troubled properties. Vaccine rollouts, strong consumer balance sheets, and pent-up demand are all positive signals, both for new delinquencies and for working out troubled properties."
Key Findings from MBA's CREF Loan Performance Survey for April 2021:
The balance of commercial and multifamily mortgages that are not current decreased again in April to its lowest level since April 2020.
Loans backed by lodging and retail properties continue to see the greatest stress, but also the most improvement.
Because of the concentration of hotel and retail loans, CMBS loan delinquency rates are higher than other capital sources.