CMBS Delinquencies Reverse Direction

After falling in October for the first time in over a year, the U.S. commercial mortgage-backed securities CMBS delinquency rate rose again in November, Trepp LLC says in its latest delinquency report. The percentage of loans 30 or more days delinquent, in foreclosure or real estate owned increased 35 basis points (bps) last month to 8.93%, putting the value of delinquent loans at $60.3 billion.

This 35-bp increase is the largest monthly increase since May, and the overall rate is the second-highest reading ever after September's 9.05%.

"This jump in delinquencies comes despite the fact that new issues are starting to make their way into the calculation and the special servicers are becoming more adept at processing the troubled loans,’ notes Manus Clancy, managing director at Trepp. ‘While we expect both of these factors will continue to put downward pressure on the rate, it would not surprise us if the rate continued to bounce around a bit as it continues to rise over the next several months."

Last month, multifamily loans overtook hotel loans in terms of delinquency rates. The rate of late pays on multifamily loans rose 117 bps to 15.8%, compared to lodging's delinquency rate of 14.56%.



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