Commercial And Multifamily Delinquencies Dip In October

The Mortgage Bankers Association's monthly CREF Loan Performance Survey reported a decline in commercial and multifamily properties in October 2020.

"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."

According to the report, fewer loans became delinquent in October with 3.4% being 90 days or more delinquent or in REO, down from 3.5% in September. Loans 30-60 days delinquent and less both saw declines.

"Loans backed by lodging and retail properties continue to see the greatest stress, with a higher share of non-current loan balances entering late-stage delinquency," according to the report.

"The overall share of lodging and retail loan balances that are delinquent fell again in October."

Click here to view the full report.