Realpoint, a Morningstar company, reports that the delinquent unpaid balance for commercial mortgage-backed securities (CMBS) fell slightly in January – only the second decrease in the past year. The delinquent UPB dropped less than 0.4%, falling from $62.32 billion in December 2010 to $62.09 billion in January 2011.
The previous decline occurred in October 2010 and was largely related to the resolution of a $4.1 billion Extended Stay Hotel loan. However, January's decrease was attributed to a greater loan workout and liquidation activity.
However, Realpoint notes, the delinquent UPB was still up 35% from one year earlier.
Three of five delinquency buckets – the 30-day and 90+ day buckets, as well as the foreclosure bucket – shrank in January.
‘With the ongoing rapid pace of loan liquidations, modifications and resolutions, the two most distressed categories of foreclosure and REO also fell by $281 million as a whole from the previous month but remain up by $14.15 billion in the past year,’ Realpoint says in its monthly commentary.
To view the company's complete monthly report, click here.
SOURCE: Realpoint
