Commercial Observer - Cathy Cunningham - 4 November 2016
The commercial mortgage-backed securities delinquency rate continued to rise last month, according to data from Trepp. The rate now sits at 4.98 percent, 20 basis points higher than September’s rate.
Over $1.9 billion in loans became newly delinquent last month “which put 42 basis points of upward pressure on the delinquency rate,” analysts wrote.
Since hitting a multiyear low of 4.15 percent in February, the delinquency rate has been notably ascending—largely due to loans from 2006 and 2007 vintages coming due. The all-time high was reached in July 2012 when the rate was 10.34 percent.
Additionally, the percentage of seriously delinquent loans—those that are more than 60 days delinquent, in foreclosure, real estate-owned or nonperforming—is also ticking upward. The October percentage was 4.87 percent, 20 basis points higher than September’s total.
Office and retail loans accounted for the highest delinquency rates by property type in October, at 6.44 percent and 6.19 percent respectively, followed by industrial (5.54 percent), lodging (3.43 percent) and multifamily (2.41 percent).
Trepp listed five newly delinquent loans in the snapshot, including 390 Park Avenue($94 million, part of the Bank of America-sponsored BACM 2005-1 transaction, nonperforming), the JQH Hotel Portfolio ($110 million, part of the Deutsche Bank-sponsored COMM 2006-C8 deal, 30 days delinquent).