Delinquency rates on loans backed by commercial real estate properties rose during the second quarter of 2023, according to a report released Tuesday by the Mortgage Bankers Association (MBA). The uptick in delinquency rates was expected and remain at the lower end of historical ranges.
Jamie Woodwell, MBA’s head of commercial real estate research stated that higher and volatile interest rates, uncertainty about property values and stresses in some property markets have increased pressure on some loans and properties. Based on unpaid principal balance figures for each lender type at the end of Q2 2023 were as follows: Banks & Thrifts (0.66%, up 0.09 percentage points from Q1), Life Company Portfolios (0.14%, down 0.07 percentage points), Fannie Mae (0
