Skip to main content

Delinquency Rate for Commercial Loans in CMBS Drops to 8.48 Percent in July

NationalMortgageProfessional.com
Aug 01, 2013

Trepp LLC, a provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its July 2013 U.S. CMBS Delinquency Report. One year ago, the Trepp CMBS delinquency rate reached an all-time high of 10.34 percent. This month, the delinquency rate for U.S. commercial real estate loans in CMBS dropped to 8.48 percent. This represents a 17-basis-point drop since June’s reading and a 123-basis-point improvement since the start of 2013. The July 2013 level is the lowest Trepp delinquency rate since September 2010. July’s rate decrease was the third time in the last four months that the Trepp CMBS delinquency rate fell. Only a four-basis-point increase in May interrupted the recent gains seen for delinquencies. This fairly consistent improvement can be largely attributed to high levels of CMBS loan resolutions. July had $2.05 billion in loans resolved—up significantly from $1.25 billion in June and $858 million in May. Also contributing to fewer delinquencies were $1.08 billion of loans that were cured during the month of July. However, July saw $2.39 billion in newly delinquent loans, which measured almost twice the total posted in June. Among the major property types, office and multifamily loans saw big improvements, each with over 40-basis-point declines. The remaining property types saw negligible movements in their rate. Retail is the best preforming major property type, while industrial is the worst. “After a rough month for CMBS market in June—with rising interest rates and widening spreads—everyone was on tenterhooks about future issuance,” said Manus Clancy, senior managing director at Trepp. “July saw the return of stability and the forward looking calendar for new deals is full. This should bode well for continued improvement in the delinquency rate going forward.”
Published
Aug 01, 2013
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021