Tag Archives: CMBS

Special servicers resolved $63.5 billion in distressed commercial mortgage-backed securities (CMBS) loans in the 18 months from January 2010 to June 2011, according to Fitch Ratings. This amount is more than three-fourths the amount resolved between 2007 and 2009. Modification is the most common resolution strategy for larger balance loans. Fitch reports that the recovery rate for CMBS loans resolved by special servicers has remained at or better than 86 percent since 2007.

Commercial real estate prices in the U.S. rose 2.4 percent between July and August, Moody's Investors Service reported Monday. The agency's index has risen in each of the last four months, and that monthly boost pushes its reading 15.3 percent above this cycle's low set in April 2011. Much of the improvement in August came from a reduction in the share of distressed deals changing hands, which were 21.7 percent of transactions. That's the lowest distressed reading since January of 2010.

The delinquency rate among commercial mortgage-backed securities (CMBS) in the U.S. have been above 9 percent for nine consecutive months, according to Moody's Investors Service's Delinquency Tracker. Moody's says the rate is now 9.36 percent, up from 9.01 percent reported last month. In addition to rising at a national level, CMBS delinquencies rose in all regions except the Midwest. All property types saw an increase in past-due loans, though multifamily continues to fare the worst.

The number of loans held in commercial mortgage backed securities (CMBS) resolved by special servicers in 2010 was more than four times the amount in 2009, according to Fitch's CMBS loss study released Wednesday. The company says special servicers have been increasingly successful selling properties and working with borrowers for discounted loan payoffs. However, despite this positive movement, Fitch remains uncertain what next year will bring amid current economic uncertainty.

After two very sharp moves over the previous two months - a huge jump in July and a big dip in August - the delinquency rate of loans held in commercial mortgage-backed securities (CMBS) stabilized in September, according to Trepp LLC. The company says for at least one month, the reading reverted to its pattern from earlier in the year when modest bumps in the rate were the norm. Trepp reports the CMBS delinquency rate inched up just 4 basis points between August and September to 9.56 percent.

The delinquency rate on loans held in U.S. commercial mortgage-backed securities (CMBS) fell 23 basis points in August to 9.01 percent, according to Moody's Investors Service. Even with a slip in the numbers, Moody's notes that August was the eighth consecutive month that delinquencies have been above the 9 percent mark. The resolutions of delinquent loans continued to exceed new delinquencies last month, with $4.1 billion in resolutions versus $2.6 billion in newly delinquent CMBS loans.

Commercial real estate prices have increased for three consecutive months, according to Moody's/REAL Commercial Property Price Indices. Prices are now similar to levels recorded two years ago. In July, the national index posted a 5 percent increase. It's now 12.6 percent above its post-peak low, however, it is 42.5 percent below its peak. Moody's sees the latest gain more as a continuation of the bottoming process than as a harbinger of recovery. Sales of distressed assets made up 28 percent of the market in July.

Data released this week by the market research firm Trepp LLC shows that the percentage of loans held in commercial mortgage-backed securities (CMBS) paying off on their balloon date came in at just under 40 percent last month. In August, 39.5 percent of the loan balances reaching their maturity date were settled in full. The figure barely budged from 39.6 percent the previous month. Trepp says prior to 2008, payoff percentages were typically well north of 70 percent.

After rising in July, CMBS delinquencies picked up their downward trend again in August, decreasing 36 basis points to 9.52 percent. This drop is the third in the past four months, according to analysis released by Trepp LLC, a provider of commercial real estate data. Serious delinquencies also declined for the month and now make up 8.79 percent of commercial mortgage loans. According to Trepp, August's decline was the largest recorded since 2008 when the credit crisis began.

The delinquency rate on loans in U.S. commercial mortgage-backed securities (CMBS) rose 22 basis points in July to hit 9.24 percent, according to Moody's. The increase follows two months in which delinquencies edged lower, and marks the seventh consecutive month the rate has come in above the 9 percent mark. The balance of loan delinquencies increased by $835 million last month. Moody's says CMBS delinquencies are likely to remain in the high single-digit range for the near term.