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CMBS Lates Inch Higher

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Defaults on loans included in commercial mortgage-backed securities deteriorated last month, though apartment delinquency was lower.

Securitized commercial mortgages had a delinquency rate of 9.22 percent last month, according to Moody’s Investors Service’s delinquency tracker. The rate reflects CMBS conduit-fusion transactions issued since 1998 and represented 4,047 in delinquent mortgages for $56.4 billion.

Delinquency rose from 9.16 percent during March, when there were 4,097 defaulted mortgages for $56.5 billion. Late payments were worse despite the decline in delinquent loans because of a $5 billion drop in total outstanding mortgages during April.

The rate of delinquency was 220 basis points higher than in April 2010.

“We expect the delinquency rate to run high single digits to low double digits over the near term,” said Moody’s Director CRE Research Tad Philipp in the statement. “The resolution process is in full swing, and liquidations should roughly balance new defaults.”

Last month, $2.9 billion in mortgages became delinquent, while $3.0 billion in loans were cured.

Hotel defaults were the worst, rising 9 basis points from March to 16.38 percent. Multifamily delinquency fell to 15.35 percent from 15.66 percent in March. After that was the industrial rate of 10.23 percent, up 35 basis points.

Retail delinquency rose 35 BPS to 7.62 percent, and office lates were mostly unchanged at 6.89 percent.

Boston’s 2.9 percent rate was the lowest among the 25 biggest metropolitan statistical areas, and Las Vegas’ 29.4 percent was the worst. Other poorly performing areas include Riverside, Calif.; Tampa, Fla.; Phoenix; and Orlando, Fla.

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