CMBS Delinquency Rate At Lowest Level In Nearly A Year

Posted by Orb Staff on February 01, 2013 No Comments
Categories : Commercial Mortgage

13215_cre_flash CMBS Delinquency Rate At Lowest Level In Nearly A Year The delinquency rate for commercial mortgage-backed securities (CMBS) dropped 14 basis points (bps) to 9.57% in January, reaching its lowest level in 11 months, according to new data from Trepp LLC. This drop follows a relatively stable fourth quarter of 2012, during which the rate hovered around 9.7%, and is the lowest reading since February 2012, when the rate was 9.38%.

Trepp reports that there were $2.8 billion in newly delinquent loans in January, which put about 50 bps of upward pressure on the delinquency rate. This was the second straight month in which new delinquencies decreased significantly.

Showing further improvement month-over-month, loan resolutions experienced a slight bump in January. Over $1.2 billion in delinquent loans were resolved with losses last month, which compares to $1.1 billion in December. The removal of these loans from the delinquent category accounted for 22 bps of downward pressure on the delinquency rate, while loans that cured put an additional 40 bps of downward pressure on the rate.

Among the five major property types, multifamily loans led the pack with a 55 bps improvement in the delinquency rate between December and January. The rate on office loans also improved, while the rates on all other major property types were modestly higher.

Trepp adds that there are $67.3 billion in loans with special servicers, representing about about 3,300 loans.

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