delinquency rate for U.S. commercial real estate loans in CMBS shot up 51 basis point

Discussion in 'Economy' started by hvactec, Aug 21, 2011.

  1. hvactec
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    hvactec VIP Member

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    CMBS delinquency hits all-time high

    In July, Trepp reports that the delinquency rate for U.S. commercial real estate loans in CMBS shot up 51 basis points to 9.88 percent. This is the highest delinquency rate in the history of the CMBS market. The spike comes after two consecutive drops in the rate for May and June, which was the first back-to-back monthly drop since the credit crisis began in 2008.

    Much of the jump, however, can be credited to a technical change in the way some special servicers have been reporting data. Historically, the Trepp Delinquency Rate has treated a loan as delinquent when the servicer has said that they were pursuing a foreclosure strategy.

    In the past, there had been a modest percentage of such loans that were current for which the special servicer was pursuing a foreclosure claim. In July, many more loans that were on a duel track for foreclosure or modification were assigned a “foreclosure” workout code. An additional 26 basis points worth of loans were assessed a “foreclosure” strategy, even though the loan was current or within its grace period.

    Despite the drops in May and June, the delinquency rate has been steadily increasing for the past year. One year ago, the overall U.S. delinquency rate was 8.71 percent and the rate of seriously delinquent loans (60+ days delinquent, in foreclosure, REO or non-performing balloons) was at 7.95 percent. The rate for seriously delinquent loans stands at 9.14 percent in July of 2011.

    read more CMBS delinquency hits all-time high | REJournals.com
     
  2. Truthmatters
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    Truthmatters BANNED

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    the numbers were going down jsut a month ago.

    The tea party downgrade worked to stall the economy just like planned
     

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