After jumping in April, liquidation volumes fell back below the $1 billion mark in May, although loss severity moved up a majority of losses, analysts claim.
May liquidations totaled $849.2 million, relative to the 12-month moving average of $1.3 billion, according to Trepp’s latest report.
The number of loans disposed with a loss in May hit 82, down from 128 in April. Additionally, the loan liquidations resulted in $408.9 million in losses, with an average loss severity rate of 48.2%.
May’s reading was 2.35 percentage points higher than April’s 45.8% and above the 12-month moving average of 42.5%.
Since Jan. 2010, servicers have been liquidating at an average rate of $1.2 billion per month, the report said.
The average size of liquidation loans in May was $10.36 million, down from $12.66 million in April, but in line with the 12-month average of $10.18 million, Trepp explained.