The delinquency rate on securitized commercial mortgages backed by hotel loans shot up 130 basis points last month. A reduction in the balance of all types of commercial mortgages that are past due was offset by an even bigger decline in total outstandings –leaving the past-due rate higher.
As of the end of November, $55.2 billion in loans included in commercial mortgage-backed securities were behind at least 30 days.
A month earlier, $55.55 billion in loans were past due, while the total was $59.91 billion a year earlier.
Based on a total of $710.01 billion in CMBS rated by Morningstar Credit Ratings LLC, last month’s delinquency rate was 7.774 percent, climbing from 7.723 percent in October when rated securities amounted to $719.23 billion.
The CMBS delinquency rate was 8.189 percent in November 2011.
Each month this year, Morningstar has warned that the delinquency rate had the potential to exceed 9 percent during 2012 because of “denial by special servicers of borrower requests for loan extensions, modifications or debt restructuring, or a decision by borrowers to surrender the collateral.”
But CMBS delinquency peaked at 8.533 percent in May and appears poised to finish 2012 at less than 8 percent.
However, the ratings agency is now warning that a delinquency rate higher than 8 percent is a real possibility in 2013.
Hurting the CMBS past-due rate were CMBS backed by hotel loans, with hotel delinquency jumping to 11.3 percent from 10.0 percent in October.
Also higher was delinquency on healthcare property loans, which climbed to 6.4 percent from 6.0 percent, and office property loans, which rose to 9.9 percent during November from 9.8 percent.
A 10-basis-point decline was recorded each for industrial property loans, retail property loans and multifamily mortgages — which respectively ended November with a 30-day delinquency rate of 10.3 percent, 7.4 percent and 5.4 percent.
