Commercial and multifamily delinquencies stay down

Commercial and multifamily mortgage delinquencies declined in the second quarter of 2022, according to a new report from the Mortgage Bankers Association (MBA).

“Delinquency rates for commercial and multifamily mortgages fell again during the second quarter of 2022,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Many capital sources are seeing delinquency rates at or approaching pre-pandemic levels, which were some of the lowest delinquency rates on record. MBA survey data has shown significant differences by property type as the COVID-19 pandemic’s effects have morphed. These property-type differences, particularly across changing economic conditions, will continue to be a key factor in commercial and multifamily loan performance.”

MBA releases its commercial/multifamily delinquency report every quarter, providing data on delinquency rates for five of the largest investor-groups in the country, namely 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% of commercial/multifamily mortgage debt outstanding altogether.