Breaking News
  • RE/MAX getting into the mortgage business; launches Motto Mortgage

    While most of the biggest names in mortgage lending are focused on the Mortgage Bankers Association’s annual conference, taking place right now in Boston, one of the biggest names in real estate revealed that it is getting into the mortgage business. On Tuesday, RE/MAX announced that it is launching Motto Mortgage, a mortgage brokerage franchise that the company plans to take nationwide. Click the headline to read more.

Percentage of CMBS loans paid at maturity falls

Trepp, a provider of commercial mortgage-backed securities data, said Friday only 34.9% of CMBS loans managed to pay off on their scheduled balloon dates in May. That is down about 13 points from April and well under the 12-month average of 39.4%, Trepp said. When analyzing the data by loan count, 48.1% of all loans paid off last month, down from 53.8% in April, but still above the 12-month rolling average of 47.5%. To show how far balloon payment performance has fallen in the space, Trepp said prior to 2008, "payoff percentages were typically well north of 70%. Since the beginning of 2009, however, there have only been two months where more than half of the balance of the loans reaching their balloon date actually paid off." In August 2008 — a month before the stock market's dramatic drop — 74.5% of CMBS loans managed to send in their scheduled balloon payments on time. A short six months later, balloon payoff rates on CMBS loans had fallen well below 40%, Trepp data released earlier this year shows. Write to Kerri Panchuk.


Services Guide

Comments powered by Disqus