CMBS Delinquency Rate at Post-Crisis Low

Phil Hall

Aug 06, 2018

The so-called “mandatory inclusion” guideline used by many cities to require a specific amount of affordable units be reserved in new residential developments has hit a major roadblock in Tennessee

The delinquency rate for commercial real estate loans in commercial mortgage-backed securities (CMBS) registered at 3.81 percent, according to new data from Trepp LLC. This represents a 12-basis point decline from the 3.94 percent level in June and a 168-basis point fall from the 5.49 percent level in July 2017, as well as the lowest level recorded since the 2008 recession.

Trepp also noted that for the first time since December 2015, apartment loans no longer carried the lowest delinquency rate among the commercial real estate sectors. Instead, the lodging sector snagged that distinction with a July reading of 2.25 percent, slightly better than the multifamily sector rate of 2.35 percent. The retail delinquency rate declined 23 basis points to 5.55 percent, and that sector continues to be the worst performing major property type in terms of delinquencies.

The total percentage of CMBS loans that are seriously delinquent is now 3.71 percent, a sharp decline from the 5.49 percent level of one year earlier. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 3.94 percent.

Link copied

Published

Aug 06, 2018

Analysis and Data

New Home Sales Dip In October But Remain Strong Year-Over-Year

October 2023 sees a 5.6% decrease in new single-family home sales compared to September, yet records a robust 17.7% compared to October 2022.

New data from the U.S. Census Bureau and the Department of Housing and Urban Development shows that new single-family home sales in October dipped, reaching a seasonally adjusted annual rate of 679,000. While this figure reflects a 5.6% decline compared to the revised Septem...

People On The Move

Five Leaders Appointed At Mortgage Subservicer

Cenlar promotes, appoints five to leadership roles

Mortgage subservicer Cenlar FSB recently announced the appointment and promotion of five leaders. The Ewing, N.J.-based company appointed two new directors and promoted three leaders to new positions. “I want to welcome our new directors and con...