Trepp: CMBS Delinquency Rate Drops For First Time In Over A Year

The delinquency rate for U.S. commercial mortgage-backed securities fell in October, marking the first month-to-month drop in over a year, according to Trepp LLC's monthly delinquency report.

The percentage of loans 30 or more days delinquent, in foreclosure or real estate owned fell 47 basis points in October to 8.58%, putting the value of delinquent loans at $58.3 billion. This compares to a delinquency rate of 4.8% in October 2009.

Loan refinancings, note sales and liquidations have put downward pressure on the delinquency rate, according to Manus Clancy, managing director at Trepp.

‘The biggest single driver in October was the final resolution of the huge Extended Stay Hotels loan, which accounted for 59 basis points in the delinquency reduction,’ Clancy says. ‘We anticipate that once the Stuyvesant Town loan is resolved, there will be another 40 basis points' worth of delinquencies removed in one fell swoop."



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