Trepp LLC, a provider of commercial mortgage-backed securities (CMBS) and commercial mortgage information, analytics and technology to the global securities and investment management industry, has released its January 2011 Delinquency Report which found that the U.S. CMBS delinquency rate rose again in January, with the percentage of loans 30 or more days delinquent, in foreclosure or real estate-owned (REO) climbing 14 basis points to 9.34 percent, the highest in history for U.S. commercial real estate loans in CMBS. The value of delinquent loans now exceeds $61.4 billion.
“While the rate continues to head higher, optimists can point to the fact that the rate of increase is significantly smaller than it was in the prior two months,” said Manus Clancy, managing director of Trepp LLC. “Pessimists can counter that the jump comes despite the fact that new issues continue to make their way into the calculation and servicers continue to resolve troubled loans.”
The new deals—which theoretically should have low delinquencies for a while—will continue to put downward pressure on the rate as issuance continues to grow in 2011, according to Trepp. Similarly, the resolution of troubled loans will also help to reduce the rate. The rate of increase has averaged 25.3 basis points per month over the previous 12 months (after backing out the Stuyvesant Town impact in March and the Extended Stay Hotels impact in October).
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