The delinquency rate for commercial mortgage-backed securities (CMBS) surged
above 7 percent in March, according to reports recently released by Trepp
LLC and Fitch
Ratings. Trepp, a New York-based company that tracks the commercial real estate
market, said February's increase in CMBS delinquencies was the smallest bump
in nine months, and there was some guarded optimism that delinquencies might
be beginning to moderate. But March data threw cold water on any notion that CMBS delinquencies might
be nearing their peak, the tracking company said. According to Trepp's monthly delinquency report TreppWire, the percentage of
loans 30 or more days delinquent, in foreclosure, or REO jumped 89 basis
points in March to 7.61 percent - the highest monthly increase since the
summer of 2009. Fitch, a ratings company also based in New York, reported the same upward
trend, saying CMBS delinquencies soared 85 basis points in March to 7.14
percent. Both companies agreed that the data was inflated by the fact that New York
City's $3 billion Stuyvesant Town (Stuy Town) is now considered "in
foreclosure." Even after subtracting out the Stuy Town impact, delinquencies were still up
over 49 basis points in Trepp's report. That's more than twice the rate
increase in February. Stuy Town had an even more notable effect on Fitch's delinquency rates. The
company said that one foreclosure filing alone contributed 61 basis points
to the overall month-to-month increase of 85 basis points. According to Fitch, delinquency rates are most prevalent in multifamily and
hotel sectors. Of all the multifamily-backed loans that Fitch rates, more
than 13 percent were delinquent in March, outdone only by hotel-backed loans
with a delinquency rate of 17.2 percent. The same was true in Trepp's report. Multifamily delinquencies were at 13.19
percent in March, and the lodging delinquency rate of 16.89 percent was the
highest of all property types. Looking forward, Mary MacNeill, managing director of Fitch, said recent
notable transfers to special servicing are indicating a future increase in
office delinquencies. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
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above 7 percent in March, according to reports recently released by Trepp
LLC and Fitch
Ratings. Trepp, a New York-based company that tracks the commercial real estate
market, said February's increase in CMBS delinquencies was the smallest bump
in nine months, and there was some guarded optimism that delinquencies might
be beginning to moderate. But March data threw cold water on any notion that CMBS delinquencies might
be nearing their peak, the tracking company said. According to Trepp's monthly delinquency report TreppWire, the percentage of
loans 30 or more days delinquent, in foreclosure, or REO jumped 89 basis
points in March to 7.61 percent - the highest monthly increase since the
summer of 2009. Fitch, a ratings company also based in New York, reported the same upward
trend, saying CMBS delinquencies soared 85 basis points in March to 7.14
percent. Both companies agreed that the data was inflated by the fact that New York
City's $3 billion Stuyvesant Town (Stuy Town) is now considered "in
foreclosure." Even after subtracting out the Stuy Town impact, delinquencies were still up
over 49 basis points in Trepp's report. That's more than twice the rate
increase in February. Stuy Town had an even more notable effect on Fitch's delinquency rates. The
company said that one foreclosure filing alone contributed 61 basis points
to the overall month-to-month increase of 85 basis points. According to Fitch, delinquency rates are most prevalent in multifamily and
hotel sectors. Of all the multifamily-backed loans that Fitch rates, more
than 13 percent were delinquent in March, outdone only by hotel-backed loans
with a delinquency rate of 17.2 percent. The same was true in Trepp's report. Multifamily delinquencies were at 13.19
percent in March, and the lodging delinquency rate of 16.89 percent was the
highest of all property types. Looking forward, Mary MacNeill, managing director of Fitch, said recent
notable transfers to special servicing are indicating a future increase in
office delinquencies. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
Twitter LinkedIn
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