This is what justifies Texas economic pride

This is what justifies Texas economic pride

Happy Independence Day, Texas

Morgan Stanley expects mortgage bond lawsuit from New York AG

Subprime securitizations at the center of lawsuit

Things at Ocwen just went from bad to much, much worse

Embattled company hit with an avalanche of bad news
W S

Multifamily delinquency rate in CMBS climbs to 17.4%, highest ever recorded by Fitch

/ Print / Reprints /
| Share More
/ Text Size+
A rise in late payments within the large multifamily sector has spawned a 36-basis-point jump in delinquencies within commercial mortgage-backed securities, according to Fitch Ratings. The agency's latest loan delinquency index showed the sudden rise in CMBS delinquencies is attributable to not only to late-pays, but to high-profile multifamily defaults. The delinquency rate in the multifamily sector rose to 17.4%  in January, up from 15.63% the prior month and at the highest level since Fitch began tracking CMBS delinquencies. Meanwhile, the overall CMBS delinquency rate in the U.S. is currently at 8.59%, according to Fitch. Fitch has 955 multifamily properties in its ratings portfolio classified as delinquent. Fifteen of the loans range in size from $54 million to $2.8 billion, making up half of the delinquent payments within the portfolio. Three multifamily loans -- valued at $915 million total -- represent the majority of the loans in default. "More defaults are likely for collateral with cash flow that was not stabilized at issuance and cash-strapped borrowers that over-leveraged their properties at the height of the market," said  Mary MacNeill, managing director of Fitch Inc. Fitch said the delinquency rates by property type are as follows:
  • Multifamily: 17.40% (from 15.63%)
  • Hotel: 14.43% (from 13.99%)
  • Industrial: 8.53% (from 6.24%)
  • Retail: 6.88% (from 7.20%)
  • Office: 5.50% (from 5.69%)
Write to Kerri Panchuk

Recent Articles by Kerri Panchuk

Comments powered by Disqus