The delinquent unpaid balance of commercial mortgage-backed security (CMBS) loans continues to fall, having dropped more than $3 billion to $58.92 billion at the end of August, Morningstar reports. The firm's September report, published Tuesday, is based off of August remittance data.
With the exception of July, CMBS delinquencies have dropped in three of the last four reporting periods, Morningstar observes. Several data providers, including Fitch Ratings and Trepp LLC, have chalked up July's delinquency spike to incongruous reporting by special services.
Of the five distressed-loan categories tracked by Morningstar, only two of the buckets – the 60-day delinquency category and real estate owned (REO) – experienced net increases. The 90+ day delinquency, foreclosure and REO categories decreased in aggregate by $2.34 billion, Morningstar says.