Realpoint: Delinquent UPB For CMBS Jumped 585% Year-Over-Year

e, the delinquent unpaid balance (UPB) for commercial mortgage-backed securities (CMBS) increased by $9.87 billion, up to a trailing 12-month high of $28.65 billion, according to a report from Realpoint Inc. Overall, the delinquent unpaid balance grew for the 10th straight month in June – up 585% from one year earlier. An increase in four of the five delinquent loan categories was noted in June, including a significant $6.82 billion increase in the 30-day delinquency bucket, Realpoint notes. Nearly one-half of this increase was driven by the reporting of $3.38 billion of GGP-sponsored but specially serviced loans as 30-days delinquent. In addition, the distressed 90+ day, foreclosure and REO categories grew in aggregate for the 19th straight month – up 32% from the previous month and up 411% from the previous year. The increase compares unfavorably to the $104.6 million in loan workouts and liquidations reported for June across 26 loans. As additional pressures are placed on special servicers to maximize returns in today's credit market, true loss severities are expected to be high, while liquidation activity is expected to slow as fewer transactions occur, the company adds. This would be the result of reduced or distressed asset pricing, lower availability of takeout financing and increased extensions of balloon defaults through 2009 and 2010. SOURCE: Re


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