According to the Mortgage Bankers Association's latest monthly CREF Loan Performance Survey, U.S. delinquency rates for mortgages backed by commercial and multifamily properties declined in September 2021. The survey was developed to better understand the ways the COVID-19 pandemic is impacting commercial mortgage loan performance.
"Commercial and multifamily mortgage performance has improved considerably since the worst of the downturn," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The stress that entered - and remains - in the market is largely concentrated in lodging and retail properties, but with fewer new loans becoming delinquent, and shrinking balances of overall delinquency as lenders and servicers work out the longer-term troubled loans."
Key Findings from MBA's CREF Loan Performance Survey:
The balance of commercial and multifamily mortgages that are not current slightly decreased in September.
Loans backed by lodging and retail properties continue to see the greatest stress.
Because of the concentration of hotel and retail loans, CMBS loan delinquency rates are higher than other capital sources.