April also marked a break from the recent pattern that had seen non‑performing matured balloon loans dominate the newly delinquent list.
Of all loans that became delinquent during the month, 42% were classified as non‑performing matured balloons, while 40% were 30-days delinquent. The remainder were in foreclosure or real estate owned (REO). Across the newly delinquent universe, non‑performing matured balloon remained the single most common delinquency classification, in line with prior months.
At the property-type level, two of the five major sectors recorded rising delinquency rates in April while three posted declines.
Industrial saw a modest increase, with its delinquency rate rising 31 basis points to 0.96%. Trepp attributed that move largely to a single portfolio loan that went 30 days delinquent during the month. Multifamily delinquencies also moved higher, climbing 56 basis points to 7.71% and pushing above last month’s high-water mark. That increase was driven primarily by the two large multifamily loans in San Francisco and New York City that went 30 days delinquent.
On the downside, lodging recorded the largest improvement among the major property types. The sector’s delinquency rate fell 79 basis points to 6.52%, reversing an increase seen in March. Trepp noted that two large lodging loans shifted to “performing, matured balloon” status from non‑performing, helping to pull the overall lodging rate lower.
