The delinquent unpaid balance for commercial mortgage-backed securities (CMBS) decreased by $58.1 million in January, reflecting a third consecutive monthly decline and a continuation of the volatility experienced in the trailing 12 months, according to new data from Morningstar Inc.
The total unpaid balance for CMBS available for review for the January remittance period decreased to $720.18 billion from $726.03 billion a month prior. The resultant delinquency ratio for January of 8.21% is up from 8.15% a month prior and in line with the 8.21% reported one year prior in January 2011. However, Morningstar notes that this ratio remains over 29 times its recorded low point of 0.283% in June 2007.
‘The movement in both delinquent unpaid balance and percentage continues to be impacted by the size and amount of loan liquidations, modifications, extensions and resolutions reported on a monthly basis, along with new balloon maturity defaults, which as a whole are leading to continued volatility in the reporting of new delinquency levels for the remainder of 2012,’ says Morningstar. ‘The delinquent unpaid balance in January 2012, however, is down five percent from one year ago – compared with $62.09 billion for January 2011 – but it remains over 26 times the low point of $2.21 billion in March 2007.’