Commercial and multifamily mortgage delinquency rates declined in the fourth quarter of 2021, down or flat for every major investor group at the end of 2021, according to the Mortgage Bankers Association’s (MBA) latest report.
MBA’s quarterly analysis includes commercial/multifamily delinquency rates among five major investor groups: commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, and Fannie Mae and Freddie Mac.
Key facts:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 0.5%, a decrease of 0.10 percentage points from the third quarter of 2021
- Life company portfolios (60 or more days delinquent): 0.04%, unchanged from the third quarter
- Fannie Mae (60 or more days delinquent): 0.42%, unchanged from the third quarter
- Freddie Mac (60 or more days delinquent): 0.08%, a decrease of 0.04% from the third quarter
- Commercial mortgage-backed securities (30 or more days delinquent or in REO): 4.02%, a decrease of 0.84 percentage points from the third quarter.
The takeaway:
“Delinquencies for some sectors appear to remain elevated for one of two reasons,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “For some, lenders and servicers continue to work-out loans that were hard hit by the pandemic. For others, the method of reporting may classify forborne or other loans as delinquent, even when they are back on track. Delinquency rates are back down to at or near their pre-pandemic levels in the other sectors.”
