Multifamily's high delinquency rates relative to other property types stems largely from loans on rent-stabilized New York properties and other loans in this category have had had a better track record when it comes to performance, according to Fitch.
Removing rent-stabilized loans like Stuyvesant Town's from multifamily delinquency data decreases the percentage to 9.3% from 14.4%, according to Fitch.
Small balance loans also contribute to the relatively high total mortgage delinquency rate and Fitch finds if those are removed, too, there still remains a fairly sizable dollar balance of better performing mortgages in this category.
"Once you strip away the loans tied to large New York properties and small balance commercial loans, you are looking at a Fitch-rated multifamily CMBS universe of approximately $52 billion,” Fitch managing director Huxley Somerville told this publication.
