The delinquent unpaid balance for loans in commercial mortgage-backed securities (CMBS) grew from $60.84 billion in July to $61.39 billion in August, Realpoint says in its monthly delinquency report. The $551.8 million increase in delinquencies compares to a $387.9 million increase from June to July but remains lower than the average monthly growth of $3.136 billion experienced from January to June.
Although the early-stage (30- and 60-day) delinquency, foreclosure and real estate owned (REO) categories each grew, the 90+ day category shrank by $1.37 billion.
‘[W]ith ongoing loan liquidations, modifications and resolutions, the distressed 90+ day, foreclosure and REO categories as a whole fell for the first time in almost three years,’ Realpoint reports. Taken together, the amount of loans in the three categories fell by $496 million, or about 1%, from the previous month.
Realpoint says that both liquidation activity and average loss severity have picked up in recent months. More than $583.5 million in loan workouts and liquidations were recorded for 95 loans in August. The average loss severity was 51.8%.