MBA: Commercial Mortgage Delinquencies See Sight Uptick in Q4 – Connect CRE

Delinquency rates for mortgages backed by commercial and multifamily properties increased slightly through the fourth quarter of 2022, according to the Mortgage Bankers Association’s (MBA) latest CREF Loan Performance Survey. The percentage of up-to-date loans decreased from 98.3% in Q3 to 98% in Q4. 

“Commercial and multifamily mortgages continued to perform well through the fourth quarter of 2022, albeit with a slight increase in the share of loans that are delinquent,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Delinquency rates increased by small amounts for most property types even while the overall rate of delinquency remains low.” 

Loans backed by lodging and retail properties continue to see the greatest stress. Both also saw upticks in delinquency rates, rising to 6.1% and 5.4%, respectively, from 5.5% and 5.3% in Q3. Although office and multifamily delinquencies each ticked upward by a percentage point, industrial declined from 0.6% to 0.3%. 

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