The Mortgage Bankers Association’s (MBA) 2021 third quarter report on commercial/multifamily delinquencies showed a decline in these rates for every major capital source since the onset of the pandemic.
The quarterly analysis focused on delinquency rates for five of the largest investor groups, MBA stated. These are commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac. These groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.
According to the report, banks and thrifts reported their delinquency rate, defined as those loans 90 or more days delinquent or in non-accrual, at 0.69 percent, a decrease of 0.06 percentage points quarter-over-quarter. Life company portfolios reported 0.04 percent of their loans as 60 or more days delinquent, a decrease of 0.01 from the second quarter of 2021.
Fannie Mae reported 0.42 percent of their loans as 60 or more days delinquent, a decrease of 0.11 percentage points, and Freddie Mac reported 0.12 percent, a decrease of 0.03 percent. CMBSs 30 or more days delinquent or in real estate owned was reported at 4.86 percent, a decrease of 0.82 percentage points.
“With low numbers of loans becoming newly delinquent, much of the declines are coming from the resolution of loans with later-stage delinquency statuses,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said.
“Despite successive waves of COVID-19, the economy has shown solid growth, and it is hard to imagine a return to the extraordinary shutdowns in early 2020 that negatively impacted some sectors of commercial real estate.”