A 38-basis-point decline in the delinquency rate was recorded last month for securitized commercial real estate loans. While all categories were lower — loans secured by healthcare, hotel and industrial properties saw a more substantial improvement.
The balance of 30-day delinquent loans included in commercial mortgage-backed securities was $55.55 billion during October. Past-due CMBS loans lightened from a month earlier, when $57.53 billion was delinquent.
In October 2011, there were $61.27 billion in delinquent CMBS loans.
The numbers are based on the $719.23 billion in transactions rated by Morningstar Research.
The rate of 30-day delinquency was 7.723 percent last month, tumbling from 8.103 percent at the end of September.
Delinquency has declined each month since May, when the rate was 8.533 percent.
A year earlier, 8.346 percent of CMBS loans were at least a month past due
Morningstar, which said that CMBS delinquency still has the potential to rise near 9 percent, continued to warn, “A denial by special servicers of borrower requests for loan extensions, modifications or debt restructuring, or a decision by borrowers to surrender the collateral, is still a legitimate concern throughout the remainder of 2012 and into 2013.”
The biggest improvement last month was with CMBS backed by healthcare property loans. The rate sank to 6.0 percent from 12.7 percent in September. However, healthcare delinquency had surged from 6.4 percent in August. A Morningstar managing director previously explained to Mortgage Daily that the healthcare category is volatile due to the small amount of healthcare loans rated by Morningstar.
The next-biggest mover was hotel loans, with delinquency dropping to 10.0 percent from the September rate of 11.6 percent.
A similar decline was registered for industrial loans, with the rate falling to 10.4 percent in October from 11.1 percent.
October’s multifamily delinquency was 5.5 percent, while office delinquency was 9.8 percent. Both categories were down 20 BPS from September.
Delinquency on retail CMBS loans was down 10 BPS to 7.5 percent.
