KBRA Releases CMBS Report: Retail And Lodging Delinquency Rate Decline

Staff Writer

Aug 30, 2021

The August delinquency rate fell to 4.6% from 4.8% in July.

KEY TAKEAWAYS

In August, the delinquency rate fell to 4.6%, down from 4.8% in July.
The largest decrease in delinquency rate came from lodging and retail, dropping from 11.9% to 11.3% and 8% to 7.4%, respectively.
The retail loans had an average loss severity of 44.6%.
This marks the 14th consecutive month in which the rate has declined or remained flat from the previous month, since peaking in June 2020 at 8.2%.

The Kroll Bond Rating Agency (KBRA) released a report on the commercial mortgage-backed securities (CMBS) loan performance trends in the August 2021 servicing report period. In August, the delinquency rate fell to 4.6%, down from 4.8% in July. This marks the 14th consecutive month in which the rate has declined or remained flat from the previous month, since peaking in June 2020 at 8.2%.

The largest decrease in delinquency rate came from lodging and retail, dropping from 11.9% to 11.3% and 8% to 7.4%, respectively. The decline in lodging delinquencies was especially sizable, considering 26 lodging loans totaling $486.7 million have become current or resolved.

Additionally, the disposition of six loans totaling $130.7 million contributed to the decline in the retail delinquencies. The retail loans had an average loss severity of 44.6% after being resolved. Multi Family homes were the only property types to increase their delinquency rate, going from 1.6% to 1.9%. This was mainly driven by five loans that became newly delinquent, totaling $109.4 million.

To read the monthly CMBS report by KBRA, click the link provided.

About the author

Katie Jensen

Staff Writer

Katie Jensen is a staff writer at NMP.

Link copied

Published

Aug 30, 2021

Sales and Marketing

Bilt’s $250M Raise Signals Big Mortgage Push Backed by UWM

Backed by a $100M investment from UWM, Bilt is bringing its rewards model to mortgage, giving brokers a new way to engage buyers, boost retention

Bilt Rewards just closed a $250 million funding round, pushing its valuation to $10.75 billion. $100 million of this round came from United Wholesale Mortgage (UWM), and the two companies are joining forces to bring mortgage rewards to market via mortgage brokers. Bilt, w...

Community

Let’s Make It Personal: Turning Contacts Into Friends

Simple ways to turn everyday contacts into genuine friends so your network feels more like a community and less like a contact list

In today’s fast-moving, digital world, it’s easy for professional relationships to feel transactional and impersonal. But the most successful connections — especially in client-focused industries like mortgage lending — are those that feel personal, authentic, and meaningful...