As more borrowers continue to default on balloon payments, the rate of late payments on securitized commercial real estate loans rose again.
As of April 30, 2017, delinquency of at least 30 days on loans included in commercial mortgage-backed securities was 5.52 percent.
The past-due rate worsened from 5.37 percent at the end of the preceding month. It was the third consecutive month of deterioration.
Trepp LLC, which reported the findings Monday, said delinquency worsened as a large amount of loans reached their balloon date but failed to pay off.
Compared to the same month last year, the rate has skyrocketed 129 basis points.
“We’ve noted repeatedly that it is hard to see the rate going down anytime in the near future,” the report stated. “It’s a prediction we stand by, as pre-crisis loans continue to reach their balloon dates every month.”
Delinquency on office CMBS loans was 7.97 percent last month, soaring from March by 59 BPS — the most of any property type.
An 18-basis-point month-over-month rise in delinquency on retail loans left the 30-day rate at 6.30 percent.
On securitized industrial property loans, the rate jumped 12 BPS to 7.15 percent.
Multifamily CMBS loans finished the most-recent month at 2.66 percent, up 6 BPS from a month earlier.
But on securitized lodging loans, delinquency tumbled 48 BPS from March 31 to 3.22 percent.
