According to the Mortgage Bankers Association's latest monthly CREF Loan Performance Survey, delinquency rates for mortgages backed by commercial and multifamily properties decreased again in March 2020, 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 delinquencies fell for the third straight month in March and are now at their lowest level since the pandemic disrupted the economy and commercial real estate a year ago," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "There continues to be significant differences in loan performance by property type, with higher delinquencies rates for lodging- and retail-backed mortgages."
MBA survey key findings include:
The balance of commercial and multifamily mortgages that are not current decreased again in March to its lowest level since April 2020.
Loans backed by lodging and retail properties continue to see the greatest stress. The overall share of industrial, retail, health and other loan balances that are delinquent decreased in March.
Because of the concentration of hotel and retail loans, CMBS loan delinquency rates are higher than other capital sources. All major capital sources saw a lower share of loan balances non-current than from a month earlier.