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Kroll Bond Rating Agency published a report that takes a look at U.S. commercial mortgage-backed securities loan performance trends in July 2021. The report found that the delinquency rate in July fell to 4.9%, down from 5.2% in June. KBRA reports that this is the 13th consecutive month where the rate has declined or was flat from the previous month since peaking at 8.2% in June 2020.
“This month, KBRA also analyzed the special servicing and modification activity of CMBS 2.0 loans outstanding at the start of the pandemic. The population, which included KBRA-rated and non-KBRA rated deals, consisted of 19,586 loans totaling $446 billion in principal balance,” according to the report.
“From April 2020 to June 2021, 1,383 (7.1%) loans transferred to special servicing, totaling $49.5 billion (11.1%). Of these, 28.6% by loan count and 34.6% by balance have transferred back to the master servicer. In addition, 885 (4.5%) loans totaling $38.4 billion (8.6%) were modified during this period. KBRA’s analysis relied on the special servicer transfer date, master servicer return date, and date of last modification as reported in the CRE Finance Council Investor Reporting Package (CREFC IRP) Loan Periodic File.”