Commercial and Multifamily Mortgage Delinquencies Decline in October

Delinquency rates for mortgages backed by commercial and multifamily properties declined in October, according to the Mortgage Bankers Association’s (MBA) latest monthly MBA CREF Loan Performance Survey. The survey was developed to better understand the ways the pandemic is – and is not – impacting commercial mortgage loan performance. “Commercial and multifamily mortgage performance improved in October, but there continues to be evidence of elevated stress, especially among loans backed by retail and lodging properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The share of loans becoming newly delinquent fell again in October, but a larger share of non-current loans shifted to later-stage delinquencies. In essence, fewer loans are becoming delinquent, but those that are delinquent show fewer signs of curing.”

Key Findings from MBA’s CREF Loan Performance Survey for October 2020:  
Commercial and multifamily mortgage loan performance improved for the second straight month in October, driven by fewer new loans becoming delinquent.

  • 94.6% of outstanding loan balances were current, up from 94.3% in September.
  •  3.4% were 90+ days delinquent or in REO, down from 3.5% a month earlier.
  •  0.6% were 60-90 days delinquent (unchanged from September).
  •  0.6% were 30-60 days delinquent, down from 0.7%.
  •  0.7% were less than 30 days delinquent, down from 0.9%. 

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