2022 Multifamily CMBS Delinquency Rates

5 min read

The latest monthly update from Trepp on how this key measure is trending.

Source: Trepp

The recent increase in interest rates, commodity prices, and general volatility hasn’t had any noticeable performance in the CMBS market aside from some spread widening up and down the credit stack. The Trepp CMBS delinquency rate posted another decline in March, continuing a trend that started almost two years ago. The rate has now fallen in 20 of the last 21 months with only a brief uptick in late 2021. The overall delinquency rate in March 2022 was 3.7 percent, a decline of 14 basis points from February.

The percentage of loans in the 30 days delinquent bucket is 0.2 percent, up one basis point for the month. In terms of loans in grace period, 1.9 percent of loans by outstanding balance missed the March payment but were less than 30 days delinquent. That’s up five basis points from February. Year-over-year, the overall rate is down 285 basis points. Year-to-date, the rate is down 84 basis points.

The percentage of loans that are seriously delinquent is now 3.5 percent, down 15 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 3.9 percent, down 16 points from February. One year ago, the rate was 6.6 percent, while six months ago it was 5.3 percent. For overall property types CMBS 1.0 and 2.0+, the multifamily rate increased by two basis points to 1.5 percent.

—Posted on Apr. 27, 2022


Source: Trepp

The Trepp CMBS delinquency rate continued its impressive decline in February 2022. The rate has now fallen in 19 of the last 20 months with only a brief uptick in late 2021. The delinquency rate in February was 3.9 percent, a decline of 31 basis points from January. That’s the first time the rate has been below 4 percent since April 2020.

The percentage of loans in the 30 days delinquent bucket is now 0.2 percent, up two basis points for the month. In terms of loans in grace period, 1.9 percent of loans by balance missed the February payment but were less than 30 days delinquent. That’s a drop of 30 basis points and could be a sign that more improvements in the delinquency rate are forthcoming.

The overall US CMBS delinquency rate dropped 31 basis points in February to 3.9 percent. (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 loans (i.e. loans in grace period or beyond grace period) was 1.9 percent in February. Year over year, the overall US CMBS delinquency rate is down 293 basis points. Year to date, the rate is down 70 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 3.7 percent, down 33 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 4.1 percent, down 33 basis points from January. One year ago, the US CMBS delinquency rate was 6.8 percent. Six months ago, the US CMBS delinquency rate was 5.6 percent. Loans that are past their maturity date but still current on interest are considered current.

The CMBS 2.0+ delinquency rate fell 29 basis points to 3.5 percent in February. That, too, is a post-April 2020 low. The rate is down 261 basis points year-over-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 3.3 percent, down 32 basis points for the month. If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 3.7 percent, down 31 basis points for the month. For CMBS 1.0 and 2.0+, the multifamily delinquency rate fell 30 basis points to 1.5 percent. For CMBS 2.0+, the multifamily rate went down 30 basis points to 1.5 percent.

—Posted on Mar. 25, 2022


Source: Trepp

The Trepp CMBS delinquency rate resumed its decline in January 2022 after a one-month pause in December 2021. In December, the rate increased for the first time since June 2020. Prior to the rise, the rate had fallen for 17 consecutive months. In January, the overall delinquency number saw a sizable decline as the Trepp CMBS delinquency rate posted its lowest reading since April 2020. The January 2022 CMBS delinquency rate was 4.2, a decrease of 39 basis points from the December number.

The percentage of loans in the 30 days delinquent bucket is now 0.2 percent, down 33 basis points for the month. In terms of loans in grace period, 2.2 percent of loans by balance missed the January payment but were less than 30 days delinquent. That was up 4 basis points for the month. 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 January. Year over year, the overall US CMBS delinquency rate is down 340 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 4.0 percent, down 6 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 4.4 percent, down 39 basis points from December. One year ago, the US CMBS delinquency rate was 7.6 percent. Six months ago, the US CMBS delinquency rate was 6.1 percent.

The CMBS 2.0+ delinquency rate fell 40 basis points to 3.8 percent in January. That, too, is a post-April 2020 low. The rate is down 308 basis points year-over-year. The percentage of CMBS 2.0+ loans that are seriously delinquent is now 3.6 percent, down 6 basis points for the month. If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 4.0 percent, down 39 basis points for the month. For CMBS 1.0 and 2.0+, the multifamily delinquency rate inched up 5 basis points to 1.8 percent.

—Posted on Feb. 28, 2022

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