Magazine article Mortgage Banking

Moody's: October CMBS Delinquencies Continue Slow Increase

Magazine article Mortgage Banking

Moody's: October CMBS Delinquencies Continue Slow Increase

Article excerpt

October delinquencies in U.S. commercial mortgage-backed securities conduit/fusion transactions increased 15 basis points to 8.39 percent, according to Moody's Investors Service, New York.

Moody's Delinquency Tracker showed $345 billion of 282 CMBS loans became newly delinquent in October, following a 14-basis-point increase in September and the fifth consecutive month of modest growth in the delinquency rate.

While total CMBS delinquent loans increased to 4,042 in October, up nearly $627 million to $52.7 billion, 211 previously delinquent loans at nearly $2.82 billion became current, worked out or disposed. From July through October, $12.8 billion in loans became current, worked out or disposed--more than the $12.6 billion from January through June.

"The increased pace of loans leaving delinquency has helped moderate the delinquency rate, but the potential for monthly spikes continues to exist due to the large number of troubled CMBS loans on the watchlist and in special servicing," said Nick Levidy, managing director at Moody's.

Hospitality properties had the greatest increase in delinquency rate in October, gaining 45 basis points to 16.39 Percent--the highest of the five core property types.

Multifamily experienced the next highest gain, up 35 basis points to a 13.77 percent delinquency rate at the end of October. New York City pro forma rent conversion properties, however, represent 67 percent of all delinquent multi-family loans by balance in the East region. …

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