The rate of commercial mortgage-backed security (CMBS) loans entering special servicing is continuing to decline, according to Fitch Ratings.
After reaching a peak of $91.2 billion in the second quarter of 2010, specially serviced CMBS loans have been declining for the last three quarters. Approximately $85.7 billion worth of loans were being worked out by special servicers as of the first quarter of this year. This trend is expected to continue, Fitch says.
‘Improving market conditions are slowing the velocity of loans transferring into special servicing,’ says Stephanie Petosa, managing director. ‘Servicers are also modifying loans and moving them back into master servicing with increased success.’
Sevent-one percent ($57.6 billion) of loans that moved out of special servicing since 2009 have been modified and returned to master servicing.
