Revealed: how many commercial, multifamily mortgages were current in June?

A survey developed to gauge how the pandemic is impacting commercial mortgage loan performance shows that delinquency rates for commercial and multifamily loans held steady in June.

The share of commercial and multifamily loan balances that were current remained unchanged at 95.2%, according to data from the Mortgage Bankers Association’s CREF loan performance survey.

“Commercial and multifamily mortgage delinquencies continue to be driven by loans backed by hotel and retail properties that ran into trouble during the pandemic and are now more than 90 days late,” said Jamie Woodwell, vice president of commercial real estate research at MBA.

The share of commercial/multifamily mortgages that were 90 days delinquent or in REO decreased from 3.1% in May to 3% in June. Meanwhile, the percentage of loans less than 30 days delinquent ticked up one basis point to 1.1% month over month.

“We expect these late-stage delinquencies to wane as the economy continues to open and there is less uncertainty surrounding the prospects of these and many other property types,” Woodwell said.

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Delinquency rates among property types were as follows:

• 17.6% of the balance of lodging loans were delinquent, down from 20% in May.
• 10.0% of the balance of retail loan balances were delinquent, up from 9.5% in May.
• 3.1% of the balances of industrial property loans were non-current, up from 1.9% in May.
• 3.5% of the balances of office property loans were non-current, up from 2.4% in May.
• 2.1% of multifamily balances were non-current, up from 1.8% in May.