2021 Multifamily CMBS Delinquency Rate

11 min read

The latest monthly update from Trepp on where this key rate is trending.

Source: Trepp

The Trepp CMBS delinquency rate increased for the first time in 18 months in December 2021. After two huge increases in May and June 2020, the rate fell for 17 consecutive months. That stretch ended at the end of the year as several large office delinquencies contributed to the increase.

The CMBS delinquency rate in December was 4.6 percent, an increase of 19 basis points from the November number. The percentage of loans in the 30 days delinquent bucket is 0.5 percent, up 24 basis points for the month.

In terms of loans in grace period, 2.1 percent of loans by balance missed the December payment but were less than 30 days delinquent. That was up eight basis points for the month. The percentageof loans with the special servicer fell to 6.8 percent in December from 6.9 percent in November. The percentage of loans on servicer watchlist dropped to 26.5 percent in December from 27.5 percent in November.

The multifamily delinquency rate dropped 14 basis points to 1.8 percent.

—Posted on Jan. 26, 2022


Source: Trepp
Source: Trepp

The Trepp CMBS delinquency rate dropped again in November, although the rate of decline slowed. After two huge increases in May and June 2020, the rate has now fallen for 17 consecutive months. The CMBS delinquency rate in November was 4.4 percent, a drop of 23 basis points from the October number. The percentage of loans in the 30 days delinquent bucket is 0.30 percent, up two basis points for the month. In terms of loans in grace period, 2.1 percent of loans by balance missed the November payment but were less than 30 days delinquent. That was up 25 basis points for the month.

The percentage of loans with the special servicer fell to 7.0 percent in November from 7.2 percent in October. The percentage of loans on servicer watchlist dropped to 27.5 percent in November from 28.2 percent in October. Our numbers above reflect percentages that assume defeased loans are still part of the denominator. The all-time high on this basis was 10.3 percent registered in July 2012. The COVID-19 high was 10.3 percent in June 2020. The percentage of A/B was 2.1 percent in November.

Year-over-year, the overall US CMBS delinquency rate is down 379 basis points. Year-to-date, the rate is down 343 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 4.1 percent, down 25 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 4.6 percent, down 23 basis points from October. One year ago, the US CMBS delinquency rate was 8.2 percent. Six months ago, the US CMBS delinquency rate was 6.2 percent. For CMBS 1.0 and 2.0+, the multifamily rate increased 20 basis points to 1.9 percent.

—Posted on Dec. 21, 2021


Source: Trepp

The Trepp CMBS delinquency rate declined sharply again in October, marking the largest decline since February 2021.  The rate was 4.6 percent, a drop of 64 basis points from the September number. The percentage of loans in the 30 days delinquent bucket is 0.2 percent, down one basis point for the month. After two huge increases in May and June 2020, the rate has now fallen for 16 consecutive months.

In terms of loans in grace period, 1.8 percent of loans by balance missed the October payment but were less than 30 days delinquent. That was down 36 basis points for the month. The percentage of loans with the special servicer fell to 7.2 percent in October from 7.5 percent in September. The percentage of loans on servicer watchlist dropped to 28.2 percent from 29.3 percent.

Year to date, the rate is down 320 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 4.4 percent, down 63 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 4.9 percent down 64 basis points from September.

One year ago, the US CMBS delinquency rate was 8.3 percent. Six months ago, the US CMBS delinquency rate was 6.5 percent.The CMBS 2.0+ delinquency rate fell 66 basis points to 4.8 percent in October. The rate is down 331 basis points year-over-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 3.9 percent, down 65 basis points for the month. If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 4.3 percent, down 66 basis points for the month.

For property types CMBS 1.0 and 2.0+, the multifamily rate declined 25 basis points to 1.7 percent.

—Posted on Nov. 22, 2021


Source: Trepp
Source: Trepp

The Trepp CMBS delinquency rate declined sharply in September with the latest number being a little over half the level seen at the peak of the COVID-19 pandemic. After two huge jumps in May and June 2020, the rate has now fallen for 15 consecutive months.

The September number represented another sizable decline, with the rate falling almost 1 percent over the last two months. The delinquency rate in September was 5.3 percent, a drop of 39 basis points from the August number. The percentage of loans in the 30 days delinquent bucket is 0.2 percent, down 17 basis points for the month. In terms of loans in grace period, 2.2 percent of loans by balance missed the September payment but were less than 30 days delinquent. That was down 26 basis points for the month.

The percentage of loans with the special servicer fell to 7.5 percent in September from 7.8 percent in August. The percentage of loans on servicer watchlist climbed to 29.3 percent in September from 29.0 percent the month prior. Our numbers above reflect percentages that assume defeased loans are still part of the denominator.

The percentage of A/B loans (i.e. loans in grace period or beyond grace period) was 2.2 percent in September. Year-over-year, the overall US CMBS delinquency rate is down 367 basis points.

Year to date, the rate is down 256 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 5.0 percent, down 22 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 5.5 percent down 42 basis points from August. One year ago, the US CMBS delinquency rate was 8.9 percent. Six months ago, the US CMBS delinquency rate was 6.6 percent.

The CMBS 2.0+ delinquency rate fell 33 basis points to 4.8 percent in September. The rate is down 330 basis points year-over-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 4.5 percent, down 16 basis points for the month. If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 5.0 percent, down 37 basis points for the month.

For property types CMBS 1.0 and 2.0+, the multifamily delinquency rate declined 23 basis points to 2.0 percent. For CMBS 2.0+, the multifamily rate dropped 24 basis points to 2.0 percent.

—Posted on Oct. 26, 2021


Source: Trepp
Source: Trepp

The Trepp CMBS delinquency rate declined sharply in August, posting the largest drop in six months. The August number represented a sizable decline after several months of mostly modest improvements. After two huge jumps in May and June 2020, the rate has now fallen for 14 consecutive months.

The delinquency rate in August was 5.6 percent, a drop of 47 basis points from the July number. The percentage of loans in the 30 days delinquent bucket is 0.4 percent–down 10 basis points for the month. In terms of loans in grace period, 2.4 percent of loans by balance missed their August payment but were less than 30 days delinquent.

That was down 51 basis points for the month. The percentage of loans with the special servicer fell to 7.8 percent in August from 8.1 percent in July. The percentage of loans on servicer watchlist climbed to 29 percent in August from 27.6 percent in July.

The percentage of A/B loans was 2.4 percent in August. Year-over-year, the overall US CMBS delinquency rate is down 338 basis points. Year-to-date, the rate is down 217 basis points. The percentage of loans that are seriously delinquent is now 5.2 percent, down 37 basis points for the month. One year ago, the US CMBS delinquency rate was 9 percent, while six months ago the rate was 6.8 percent.

The CMBS 2.0+ delinquency rate fell 39 basis points to 5.1 percent in August. The rate is down 310 basis points year-over-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 4.7 percent, down 28 basis points for the month.

For property types CMBS 1.0 and 2.0+, the multifamily delinquency rate declined 234 basis points to 2.2 percent with the curing/correction of the Parkmerced loan from last month. For property types CMBS 2.0+, the multifamily delinquency rate went down 233 basis points to 2.2 percent.

—Posted on Sep. 28, 2021


Source: Trepp

The Trepp CMBS delinquency rate fell again in July, but the rate of decline has leveled off considerably from the improvements the market was seeing six months ago. The CMBS delinquency rate in July was 6.1 percent, a drop of four basis points from the June number. After two huge jumps in May and June 2020, the rate has now fallen for 13 consecutive months.

For those looking for a recap, the surge in CMBS delinquencies that most industry watchers were anticipating at the start of the coronavirus pandemic came through in May 2020 and then again in June 2020. After the surge, the rate hit “terminal delinquency velocity” meaning most of the borrowers that felt the need for debt service relief had already requested it. Since then, the CMBS delinquency rate has been on a downward trend, with the largest drop in the rate seen in February 2021.

The percentage of loans in the 30 days delinquent bucket is 0.5 percent, up eight basis points for the month.

The CMBS 2.0+ delinquency rate fell five basis points to 5.5 percent in July. The rate is down 317 basis points yearover-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 4.9 percent, down 13 basis points for the month. If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 5.6 percent, down five basis points for the month.

For overall property types, the CMBS 1.0 and 2.0+ multifamily delinquency rate rose 250 basis points to 4.5 percent.

—Posted on Aug. 27, 2021


Source: Trepp
Source: Trepp

The Trepp CMBS delinquency rate continued to decline in June 2021, but this drop came by the narrowest of margins. The CMBS delinquency rate in June is 6.2 percent, a drop of only one basis point from the May number. The rate has now declined for 12 consecutive months.

The multifamily delinquency rate rose 10 basis points to 2.0 percent for CMBS 1.0 and 2.0+.

For those looking for a recap, the surge in CMBS delinquencies that most industry watchers were anticipating at the start of the coronavirus pandemic came through in May 2020 and then again in June 2020. After the surge, the rate hit terminal delinquency velocity meaning most of the borrowers that felt the need for debt service relief had already requested it.

Since then, the CMBS delinquency rate has been on a downward trend, with the largest drop in the rate seen in February 2021. The percentage of loans in the 30 days delinquent bucket is 0.4 percent–up five basis points for the month. In terms of loans in grace period, 2.0 percent of loans by balance missed the June payment but were less than 30 days delinquent. That was down 75 basis points for the month.

—Posted on Jul. 27, 2021


Source: Trepp
Source: Trepp

After two huge jumps in May and June 2020, the rate has now declined for 11 consecutive months. The CMBS delinquency rate in May was 6.2 percent, a drop of 36 basis points from the April number. The percentage of loans in the 30 days delinquent bucket is 0.38 percent, down 31 basis points for the month.

In terms of loans in grace period, 2.8 percent of loans by balance missed the May payment but were less than 30 days delinquent. That was up 52 basis points for the month. The percentage of loans with the special servicer fell to 8.7 percent in May from 9.0 percent in April. The percentage of loans on servicer watchlist climbed to 26.6% in May from 25.7% in April.

The overall US CMBS delinquency rate dropped 36 basis points in May to 6.2 percent. (The all-time high on this basis was 10.3 percent registered in July 2012). The percentage of A/B loans (i.e. loans in grace period or beyond grace period) was 2.8 percent in May. Year over year, the overall US CMBS delinquency rate is down 99 basis points.

Year-to-date, the rate is down 165 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 5.8 percent, down eight basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 6.5 percent, down 38 basis points from April. One year ago, the US CMBS delinquency rate was 7.2 percent. Six months ago, the US CMBS delinquency rate was 8.2 percent.

The multifamily delinquency rate declined 36 basis points to 1.9 percent.

—Posted on Jun. 29, 2021

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