More than $1.3 billion in commercial mortgage-backed securities conduit loans were resolved with losses in July, commercial real estate analytics firm Trepp said Monday. Overall, 175 conduit CMBS loans were liquidated this past month, down from 197 liquidations in June when $1.8 billion in CMBS conduit loans were resolved with losses. In July, the liquidation of conduit CMBS loans resulted in $538 million in losses, with a loss severity rate of 40.2%, down from a rate of 46.4% a month earlier and slightly below the average monthly rate of 41.8%. Meanwhile, defaults on loans in fixed-rate, commercial mortgage-backed securities continued to grow, with the default rate hitting 12.9% at the end of the second quarter, up 228 basis points from Dec. 31, Fitch Ratings said. For the first seven months of the year, Fitch rated $9.95 billion of new fixed-rate, conduit CMBS. But that level was unable to stabilize the cumulative CMBS default rate, according to Fitch’s Managing Director Mary MacNeill. “Highly leveraged loans from recent vintage CMBS are also still defaulting at an elevated rate,” MacNeill said in a report released last month. Write to Kerri Panchuk.
CMBS loan liquidations drop in July: Trepp
Most Popular Articles
Latest Articles
Low inventory creates challenging conditions in North Carolina’s housing market
With homeowners reluctant to give up their low interest rates and few new construction options available, supply is running short.
-
Tri-state area housing shortage could cost the region economically
-
Remote reverse mortgage counseling now permanently permitted in Massachusetts
-
NAR settlement terms slated to go into effect in mid-August
-
eXp acquires 500-agent independent brokerage in Florida
-
FHA extends foreclosure moratorium on Hawaiian island of Maui