Wave of CMBS Servicer Downgrades
Fitch Ratings revised its criteria for servicers of loans that back commercial mortgage-backed securities -- leading to downgrades at 10 companies. But three servicers saw their ratings upgraded.
Banks Increase Share of Commercial Mortgage Holdings
Commercial mortgages owned by life insurers or held in securitization slipped during the latest quarter. But holdings at commercial banks and savings institutions picked up the slack.
CMBS Delinquency Soaring
Delinquency on loans behind commercial mortgage-backed securities is projected to climb as high as 5 percent this year from less than one-quarter percent in 2007.
Commercial Delinquency Deteriorating
Between the end of last year and the end of this year, commercial mortgage delinquency is projected to more than double.
Commercial Production Down by Over Half
Commercial mortgage originations dropped by nearly two-thirds last year and might fall further.
Commercial Mortgage Delinquency More Than Doubles
Delinquency on commercial mortgages owned by U.S. financial institutions or held in securitizations is at the highest level since 2001. During just the past year, commercial mortgage delinquency has more than doubled.
Treasury Reports Biggest Lenders
The biggest recipients of the Troubled Asset Recovery Program increased quarterly residential originations by $134 million. Even monthly originations jumped. But the news wasn't so good from commercial mortgage production or for purchases of mortgage-backed securities.
2 Casualties
So far today, one financial institution has been seized. Earlier this month, a small-balance commercial mortgage unit was closed by a Wells Fargo & Co. subsidiary. The closing of more than 70 mortgage-related.
