CRE Loan Delinquencies Continue on Downward Trend
Delinquency rates of mortgages backed by commercial and multifamily properties have broadly improved in recent months, the Mortgage Bankers Association (MBA) reported this week.
The summary of findings come from MBA’s Commercial Real Estate Finance Loan Performance Survey for August, and the latest quarterly Commercial/Multifamily Delinquency Report for the second quarter of 2021.
“Performance is still property-type dependent, with the properties that saw the most immediate and dramatic impacts from the pandemic – lodging and retail – still experiencing considerably more stress than others but showing improvement,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Delinquency rates are down significantly for those property types and remain muted for others.”
Woodwell added, “There should be continued downward pressure on delinquency rates as more later-stage delinquencies are worked through. What happens with early-stage delinquencies will largely be a function of the broader economy.”
- ◦Financing
- ◦Economy
