4.1.14: Trepp Reports Further Decline in Delinquency

The CMBS delinquency rate continued its impressive decline in March, marking the tenth consecutive month the rate has fallen, according to Trepp.

The rate dropped 24 basis points (bp) over the course of the month, bringing the delinquency rate for U.S. commercial real estate loans in CMBS to 6.54%. The Trepp delinquency rate is 228 bp lower than a year ago and 380 bp lower than the all-time high reached during the summer of 2012.

U.S. CMBS Delinquency Rate:

Period % 30 Days
or More Delinquent
Mar-14 6.54%
Feb-14 6.78%
Jan-14 7.25%
3 Months Ago 7.43%
6 Months Ago 8.14%
12 Months Ago 9.50%

Driven by ongoing CWCapital distressed asset sales, the forecasted drop in delinquencies that accelerated in February extended into March with a large block of distressed asset resolutions. Over $2.1 billion in previously delinquent loans were resolved with losses over the course of the month. This level was down from $2.6 billion in February, but was still above the normal monthly average over the last two years. By removing these delinquent loans from the numerator, the rate improved 40 bp.

This entry was posted in CMBS, CMBS Securities, Commercial Mortgage-Backed Securities, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s