The default rate across banks’ multifamily and commercial real estate mortgages declined to 1.6 percent in the first quarter, Chandan Economics has shown in its quarterly Bank Lending and Default Report. The overall rate of default (including loans 90+ days delinquent and in non-accrual) has now fallen for the twelfth consecutive quarter, reflecting write-downs, troubled debt restructurings, and the dilution of legacy loans by banks’ new mortgage lending. The multifamily default rate has fallen to 0.7 percent, its lowest level since before the recession, while the slower recovery in the commercial pool has pulled its default rate down to 1.8 percent.

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