GlobeSt reported last week (see Paul Bubny’s September 1 article) that the rise in the commercial real estate default rate for bank-held mortgages slowed markedly in the second quarter. Based on an analysis of bank filings and FDIC reports by Real Capital Analytics, the default rate for multifamily mortgages – which up to now has exceeded the commercial default rate – actually fell over the same period, marking the first meaningful improvement in the metrics of distress so far this cycle.

While the second quarter’s update suggests that conditions may be easing, the improvement has been relatively isolated amongst larger institutions.

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