KBRA Releases CMBS Report: Retail And Lodging Delinquency Rate Decline

Associate Editor

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

Associate Editor

Katie Jensen is a mortgage news reporter at NMP.

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Published

Aug 30, 2021

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