CMBS delinquencies fall in August: Trepp
The rate of delinquent loans in commercial mortgage-backed securities plunged 36 basis points to a rate of 9.52% in August, making it the second-largest drop since the credit crunch began in the summer of 2008, Trepp said. That compares to a delinquency rate of 9.88% in July and 9.37% in June. A year ago, the U.S. delinquency rate sat at 8.92%. Meanwhile, the percentage of loans classified as seriously delinquent or 60 or more days past due or in foreclosure is at 8.79%, down 35 basis points from July. Trepp, a CMBS analytics firm, said this is the third consecutive drop in the past four months, and it arrives after a series of reports showing delinquencies climbing in the period stretching from late spring to early summer. Trepp said the August CMBS delinquency report is the only piece of positive news to surface after a month of negative activity in terms of jobs and stock market growth. Still, Trepp said the August drop is somewhat related to changes in how special servicers report loan data. In July, the delinquency rate rose because special servicers started flagging dual tracked loans as "in foreclosure." This changed in August, pushing the delinquency rate lower, Trepp said. Delinquencies on hotel loans fell the most in August, dropping 128 basis points to 13.76%. Industrial delinquencies, on the other hand, jumped 15 basis points to 11.24%, while the office delinquency rate remained unchanged at 8.17%. The multifamily and retail delinquency rates fell 50 basis points and 47 basis points, respectively, hitting 16.44% and 7.38%. Write to: Kerri Panchuk.