Banks reported another surge of multifamily loan defaults in Q1 2024 while late-stage defaults continue to mount up.
Dive into the BankProspector dashboard to find out which banks are holding the most non-performing notes now.
Multifamily
Almost 60% of non-performing multifamily loans now sit in the nonaccrual stage. This now totals over $2.22B.
Nonperforming multifamily loans hit a new high in Q1 2024, at around double the dollar volume banks held in Q3 2022.
This is a trend we’ve been seeing since 2022. A pattern that continues to spread to more institutions, with 277 banks reporting that they held non-accrual stage multifamily mortgage loans in Q1.
More loans appear to be making it to the nonaccrual stage, with over $1.3B in 30-89 day late loans.
Multifamily REO
Despite banks apparently being successful in heading off defaults before the final stages, banks only reported holding $106M in multifamily REO in Q1.
However, this is more than double that on banks’ books as of the beginning of the year.
Looking Ahead
Income properties are still highly desired by investors and funds. However, high inflation and high interest rates, and with many areas becoming increasingly less friendly to landlords, many of these properties don’t seem to be attracting the buyers or financial bailouts they did in recent years.
Log in now to see which banks are holding the most distressed multifamily loan notes…
