Securitized commercial real estate loans saw an increase in delinquency last month, and concerns about denials of loan modifications and debt restructurings this year could have the rate of late payments up nearly another 100 basis points.
Loans included in commercial mortgage-backed securities had a 30-day delinquency rate of 8.209 percent as of January.
That worked out to around $59.12 billion in past due CMBS loans. The total reflected $13.86 billion in loans in foreclosure and $15.21 billion in real-estate-owned assets.
Morningstar Research, which delivered the data, said delinquency deteriorated from December, when the rate was 8.151 percent.
Late payments on securitized CRE loans had been down in both December and November, when the rate was 8.189 percent.
Total CMBS outstanding fell to $720.18 billion last month from $726.03 billion as of Dec. 31, 2011.
“A denial of borrower requests for loan modifications or debt restructuring by special servicers, or a decision by borrowers to surrender the collateral, is a legitimate concern throughout 2012,” the report predicted. “Based upon this concern and despite the recent liquidation activity experienced over the trailing 12-months, the delinquent unpaid balance for CMBS still has the potential to grow higher than 9 percent at some point in 2012.”
