Delinquencies on commercial and multifamily mortgages fell in Q4 2021, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Outstanding loan balances that were current on their payments rose from 96.7% to 97%, with only 1.9% 90 or more days delinquent or in REO, down from 2.2%. Loans 60-90 and 30-60 days delinquent saw no change, at 0.2% and 0.3% respectively. Loans that were less than 30 days delinquent fell 0.1% to 0.7%. Lodging and retail properties continued to be the most delinquent but saw improvement in Q4. For lodging loans, delinquencies fell 3.5% to 10.5%, while delinquent retail loans fell from 8.2% to 7.6%. CMBS loans also saw improvement, with 5.7% of balances non-current, down from 7.2% in…
Freddie Mac’s annual multifamily outlook projects another strong year, with rents continuing to increase despite an overall moderating market. The report projects that the Sun Belt will outperform slow-growing smaller markets in the Northeast and Midwest. “We believe the market will continue to grow in 2022, reflecting the strong multifamily fundamentals that drove the market to a record-breaking year in 2021,” said Steve Guggenmos, vice president of Multifamily Research & Modeling at Freddie Mac. “We anticipate rent growth in all markets in 2022 due to strong demand driven by improving economic conditions.” Growth broke records in 2021 thanks to changing migration patterns and strong economic conditions. Multifamily demand reached its highest ever levels during Q2 and Q3 of 2021, and…
Delinquencies on commercial and multifamily mortgages fell in Q3 2021, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Loans delinquent by more than 90 days or in non-accrual fell by 0.06 points in Q2 to 0.69% for banks and thrifts. Life company portfolios saw a decrease of 0.01 to 0.04% for loans 60 or more days late. Fannie Mae and Freddie Mac delinquencies of 60 or more days fell to 0.42% and 0.12%, respectively. For CMBS, the delinquency rate for 30 or more days or in REO fell 0.82 percentage points to 4.86%. “Commercial mortgage delinquency rates for every major capital source have come down since the early months of the pandemic,” said Jamie Woodwell, MBA’s Vice President…
In a sign of a strengthening economy, delinquency rates for mortgages backed by commercial and multifamily properties decreased again in April, according to the Mortgage Bankers Association’s (MBA) latest monthly CREF Loan Performance Survey released Monday. Commercial and multifamily delinquency rates reached their lowest level since the start of the Covid-19 pandemic more than a year ago. The survey found: 95.1 percent of outstanding loan balances were current, up from 95 percent in March.3.2 percent were 90+ days delinquent or in REO, unchanged from a month earlier.0.3 percent were 60-90 days delinquent, unchanged from a month earlier.0.4 percent were 30-60 days delinquent, down from 0.5 percent a month earlier.1.1 percent were less than 30 days delinquent, up from 0.9 percent.…
Commercial and multifamily mortgage loan originations were 76 percent higher in the fourth quarter than the quarter before – but remained 18 percent lower than the same period in 2020, according to a report released Monday by the Mortgage Bankers Association. For the year, preliminary MBA numbers show commercial and multifamily borrowing was 30 percent lower than in 2019. The report found: A 79 percent year-over-year decrease in the dollar volume of loans for hotel properties in the fourth quarter.A 72 percent decrease for retail properties.A 56 percent decrease for office properties.A 12 percent decrease for health care properties.Industrial property loan originations increased 15 percent.Multifamily property lending rose 14 percent. “The last three months of 2020 were stronger than earlier…
The Freddie Mac Multifamily Apartment Investment Market Index rose by 1.9 percent in the third quarter, meaning there were more attractive investment opportunities in the multifamily market. The third-quarter increase comes after a 0.3 percent decline in the second quarter, while the AIMI increased by 2 percent for the year. AIMI is an analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that measures multifamily market investment conditions. “AIMI rebounded in the third quarter as mortgage rates dropped and despite the stresses created by COVID-19, multifamily fundaments have been relatively resilient to date,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling. “Nationally, AIMI continues to be…
The 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $140 billion – or $70 billion for each Fannie and Freddie, the Federal Housing Finance Agency announced Tuesday. The $140 billion will support the multifamily market, and at least 50 percent of Fannie and Freddie’s multifamily loans are required to be used for affordable housing. “Multifamily housing is a critical component of the nation’s housing supply and especially of its affordable housing stock. As we continue to address the shortage of affordable housing, especially amid the COVID crisis, FHFA will keep a close eye on the multifamily caps to ensure that they are sufficient and serve to increase the supply of affordable housing but do not…
Delinquency rates for commercial and multifamily property mortgages declined in October as the Covid-19 pandemic stretched into the fall, according to a survey released Monday by the Mortgage Bankers Association. The survey found: 94.6 percent of outstanding loan balances were current, up from 94.3 percent in September.3.4 percent were 90+ days delinquent, down from 3.5 percent a month earlier.0.6 percent were 60-90 days delinquent, which is unchanged from September).0.6 percent were 30-60 days delinquent, down from 0.7 percent.0.7 percent were less than 30 days delinquent, down from 0.9 percent. “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…
Commercial and multifamily mortgage debt in the United States increased to $3.76 trillion at the end of the second quarter, according to a report released Monday by the Mortgage Bankers Association. The level of commercial and multifamily debt increased by $43.6 billion in the quarter – or 1.2 percent. “Despite a drop off in new commercial and multifamily mortgage originations in the second quarter, the total amount of mortgage debt outstanding continued to rise,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The pandemic is having different impacts on various property types and capital sources. Loans backed by multifamily properties accounted for almost three-quarters of the total growth, and Fannie Mae, Freddie Mac, and FHA accounted for…
Even as the housing market fought through the coronavirus pandemic, commercial and multifamily mortgage loan originations dropped 48 percent in the second quarter compared to a year ago, according to a survey released Monday by the Mortgage Bankers Association. MBA’s quarterly survey of commercial/multifamily mortgage bankers originations found they had declined 31 percent from the first quarter. “Commercial real estate borrowing and lending slowed dramatically in the second quarter, as uncertainty around the COVID-19 pandemic caused both borrowers and lenders to focus more of their attention on their existing books of business instead of new opportunities,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. All property types showed a decline in the second quarter in commercial/multifamily lending…
