According to the latest Commercial Delinquency Report from the Mortgage Bankers Association (MBA), commercial mortgage delinquencies saw an increase in the fourth quarter of 2023. All major capital sources, except for one, experienced a rise during this time.
MBA’s head of commercial real estate research, Jamie Woodwell stated that “commercial mortgage delinquency rates continued to climb in Q4 2023.” This can be attributed to factors such as higher interest rates, uncertainty surrounding property values and challenges in certain property fundamentals.
It should be noted that each lending group has its own method for tracking delinquencies. Based on unpaid principal balance of loans, here are the delinquency rates for each group at the end of Q4 2023:
– Banks and thrifts (90 or more days past due or non-accrual): 0.94%, up by 0.09 percentage points from Q3
– Life company portfolios (60 or more days past due): 0.36%, an increase of 0.04 percentage points from Q3
– Fannie Mae (60 or more days past due): down by -8% with a rate at .46%
Freddie Mac: Up by .04% with a rate at .28%
CMBS: Up by .04% with a rate at %4/30%
The MBA report highlights how most lender types have seen an uptick in CRE loan defaults during this period without mentioning specific organizations like Connect CRE , Connect LA , etc.
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