According to a recent report by the Mortgage Bankers Association on Commercial and Multi-Family Crime, U.S. sales and multi-family crime declined in the fourth quarter of 2021.

“Commercial and multi-family transactions continue to decline, with crime rates lower or lower for each group of traders,” said Jamie Woodwell, senior vice president of commercial real estate research at MBA. “In some jurisdictions, cases appear to be escalating for one reason or another. For some, lenders and employees continue to pay debts that have been hit by the plague. For others, the reporting process may reflect debts or other debts if they are back on track.

The quarterly MBA survey looks at fraud/fraud rates in five major business groups: retail banks and savings, mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. Together, these groups account for more than 80 percent of the remaining retail / multi-family mortgage debt. An MBA audit covers the steps that each group of traders uses to determine the performance of their loans. Because each investment group drives crime in its way, incomparable crime from one group to another. As one example, Fannie Mae reports debts that become tolerant of payment as fraudulent, while Freddie Mac does not account for those debts if the debtor complies with the settlement agreement.

According to the outstanding amount of loans (UPB), the fraud rates by each group at the end of the fourth quarter of 2021 were as follows:

• Banks and savings (90 or more days held or not received): 0.59 percent, a decrease of 0.10 percentage points compared to the third quarter of 2021;

• Company life units (60 or more crime days): 0.04 percent, unchanged with a third party;

• Fannie Mae (over 60 days): 0.42 percent, unchanged for a third party;

• Freddie Mac (60 or more days ago): 0.08 percent, 0.04 percent lower than in the third quarter; and

• CMBS (30 days or more or REO): 4.02 percent, down 0.84 percent from the third quarter.

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