CMBS Delinquency Rate Drops to Lowest Point in Nearly a Year – NMP Skip to main content

CMBS Delinquency Rate Drops to Lowest Point in Nearly a Year

NationalMortgageProfessional.com
Feb 01, 2013

Trepp LLC has released its January 2013 U.S. CMBS Delinquency Report. The delinquency rate for U.S. commercial real estate loans in CMBS fell 14 basis points in January to 9.57 percent. This is the lowest level in 11 months, since February 2012 when the rate was at 9.38 percent, and the improvement marks the resumption of the downward trend in the rate that began in August 2012. Loan resolutions experienced a slight bump in January, with over $1.2 billion in loans resolved with losses. The removal of these loans from the delinquent category helped drive the delinquency rate down 22 basis points. Loans that cured put an additional 40 basis points of downward pressure on the rate. There was approximately $2.8 billion of newly delinquent loans in January, putting 50 basis points of upward pressure on the rate. This total was less than the $3.2 billion of newly delinquent loans reported in December 2012. "If the CMBS market was cycling, people would think that someone had been dumping performance enhancing drugs in the water cooler," said Manus Clancy, senior managing director of Trepp. "New issue volume hit a five-year high in January; spreads on legacy AJ and mezzanine paper collapsed; pricing levels on new deals came in remarkably tight across the credit stack; and the delinquency rate fell once again–all very positive signs for the market." According to the Trepp report, refinancing activity is expected to increase in 2013 and will offset some of the downward pressure on the overall delinquency rate by removing some performing loans from the equation. In addition, performing loans past their balloon dates continue to show dramatic improvements, specifically during the past six months. Among the major property types, the multifamily delinquency rate remains the worst major property type, despite falling 55 basis points in January, followed by office loans, which dipped 18 basis points. Industrial, lodging, and retail loans all saw substantial improvement in their rates, with retail remaining the best performing major property type.
Published
Feb 01, 2013
KBRA Assigns Preliminary Ratings To CSMC 2022-NQM1 Trust

Kroll Bond Rating Agency assigned preliminary ratings to CSMC 2022-NQM1, a $553.7 million non-prime RMBS transaction sponsored by DLJ Mortgage Capital, Inc.

Non-QM
Jan 25, 2022
Hunt Mortgage Appoints Chief Operating Officer

Bindiya Jain previously has served as a vice president at South Shore Bank and at UniBank for Saving. 

Industry News
Jan 25, 2022
Guild Mortgage Names VP Of Marketplace Diversity Strategy

Guild Mortgage named Victoria Garcia DeLuca as the company's vice president of marketplace diversity strategy, which is aimed at increasing homeownership among minorities and underserved markets.

Industry News
Jan 25, 2022
Deephaven Introduces Jumbo-Prime Loans

Non-agency/non-QM Deephaven Mortgage announced a new jumbo-prime loan product, as it looks to help mortgage banks and brokers compete for high-net-worth borrowers.

Jumbo
Jan 25, 2022
Rocket Mortgage Brokers Now Backed By A Crew Of Experts

Every broker partner with the company will have direct access to a small, dedicated team of mortgage experts to answer their loan questions.

Industry News
Jan 24, 2022
Atlanta Real Estate Agent Sentenced For Running Multi-Year Mortgage Fraud Scheme

So far, up to 11 people have plead guilty in Federal Court to the multi-year mortgage fraud scheme, which netted more than $21 million in fraudulent mortgage loans.

Industry News
Jan 24, 2022