Mortgage Daily Logo

CMBS Lates Lower Despite Deterioration in Office, Retail

Mortgage News

Delinquency on securitized commercial real estate loans was lower last month even though the rate on mortgages secured by office properties and retail properties took a turn for the worse.

Loans that are owned by commercial mortgage-backed securities had a cumulative 60-day delinquency rate of 8.39 percent during August.

The rate of past-due payments fell from July, when 8.48 percent of rated CMBS loans were delinquent.

Fitch Ratings previously reported that CMBS delinquency was 8.37 percent at the end of 2011.

Last month’s decline reflected $2 billion in resolved loans and $1.7 billion in newly delinquent loans.

Hotel loans had last month’s highest delinquency rate at 10.82 percent. But late payments in the sector improved from 11.46 percent in July.

Multifamily loans saw the biggest decline from July: 71 basis points. That left the August multifamily delinquency rate at 10.18 percent.

The rate on industrial property loans fell to 8.54 percent from July’s 8.68 percent.

Two categories — office and retail — saw deterioration in August.

Sixty-day delinquency on office property loans worsened to 8.72 percent from 8.43 percent in July. Around 29 BPS of the deterioration was from a $678 million office portfolio in Falls Church, Va., that joined the ranks of delinquent assets during the latest month. A loan modification is being negotiated on that Virginia portfolio.

Retail delinquency climbed to 7.43 percent in August from 7.40 percent.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam