According to the Mortgage Bankers Association, default rates for mortgages backed by commercial and multi-family properties have improved significantly in recent months.
The summary of the results comes from the MBA Commercial Real Estate Finance (CREF) Loan Performance Survey for August and the latest Quarterly Commercial / Multi-Family Delinquency Report for the second quarter of 2021. The survey on loan performance CREF was developed by MBA to better understand the ways The pandemic is impacting the performance of commercial mortgages. The MBA’s regular quarterly analysis of commercial / multi-family delinquency rates is based on third-party figures covering each of the major sources of capital.
“Default rates for mortgages backed by commercial and multi-family properties have improved significantly in recent months as the US economy continues to recover from the COVID-19 pandemic,” said Jamie Woodwell, vice president MBA for commercial real estate research. “Performance always depends on the type of property, properties that have suffered the most immediate and dramatic impacts of the pandemic – accommodation and retail – are still under a lot more stress than others but are still under stress. Delinquency rates are down significantly for these types of property and remain muted for others. “
Woodwell added: “There should be continued downward pressure on delinquency rates as more late-stage delinquency is addressed. What happens with early stage delinquency will largely depend on the economy at large.