CRE Mortgage Delinquencies Remain Low Despite Slight Upticks in Q4

With rates ranging from a low of 0.11% for life companies to 2.90% for CMBS, commercial and multifamily mortgage delinquencies remained low in the fourth quarter of 2022, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. However, all lender groups aside from the GSEs saw slight increases during the quarter.  Based on ... The post CRE Mortgage Delinquencies Remain Low Despite Slight Upticks in Q4 appeared first on Connect CRE.

CRE Mortgage Delinquencies Remain Low Despite Slight Upticks in Q4

With rates ranging from a low of 0.11% for life companies to 2.90% for CMBS, commercial and multifamily mortgage delinquencies remained low in the fourth quarter of 2022, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. However, all lender groups aside from the GSEs saw slight increases during the quarter. 

Based on unpaid principal balance as Q4 ended, the delinquency rates for each group were as follows: 

  • Banks and thrift, 0.45%, up one basis point; 
  • Life company portfolios, 0.11%, up two bps; 
  • Fannie Mae, 0.24%, down two bps; 
  • Freddie Mac, 0.12%, down one bp; 
  • CMBS, 2.90%, up 13 bps. 

Notwithstanding the slight upticks, “the overall performance remained positive,” said Jamie Woodwell, MBA’s head of commercial real estate research. “It is likely that as higher interest rates and softer property values work through the system this year – prompted by maturing and adjustable-rate loans – loan performance will adjust.” 

The post CRE Mortgage Delinquencies Remain Low Despite Slight Upticks in Q4 appeared first on Connect CRE.

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