New York Community Bank announced that a quarter of its $31.3 billion multifamily loan portfolio is currently in deferral, but rent collections were better than expected. Borrowers whose cash flows are impacted by the health crisis were given two options: six months of interest-only and escrow payments, or deferral of principal and interest for six months, payable at maturity, TRD noted.
- Heard on the Street: CEO Joseph Ficalora: “Based on our market intelligence, April rent collections on rent-regulated buildings in our portfolio are estimated to be 80 to 85 percent of normal levels… On market rent properties it is even higher.”
- Small landlords getting hit hardest: The rate of deferrals varies across asset types. Just 6 percent of residential buildings with more than 100 units are in deferral. But smaller and mixed-use buildings with retail components are experiencing much higher rates of deferral.