Commercial and multifamily mortgage performance continues to normalize

Commercial and multifamily mortgage delinquencies remained low in the fourth quarter of 2021, with delinquency rates down or flat for every major investor group.

Four of the five largest investor groups posted declines in delinquency rates at the end of Q4, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report.

Based on the unpaid principal balance (UPB) of loans, delinquency rates for Fannie Mae loans held steady at 0.42%, while Freddie Mac delinquencies decreased 0.04% quarter over quarter to 0.08%. Commercial banks and thrifts saw a 0.10% drop to 0.59% in the fourth quarter, commercial mortgage-backed securities (CMBS) delinquencies were down 0.84% to 4.02%, and life company portfolios stayed unchanged at 0.04%.