Late payments on commercial mortgage-backed securities loans declined 14 basis points in July, falling to 8.48% from 8.62% a month earlier, Fitch Ratings said in a new report.

The drop is attributed to more loan workouts, including the modification of two large loans: the $305 million Schron Industrial Portfolio (GCCFC 2007-GG9) and the $210 million Savoy Park (CSMC 2007-C1) loan.

July marks the second consecutive month of declines for U.S. CMBS delinquencies, according to a Fitch report compiled by Fitch Managing Director Mary MacNeill and Associate Director Melissa Che.

Delinquencies on office CMBS loans fell 15 basis points, while hotel CMBS late pays saw a 24 basis point increase after experiencing delinquency drops for several months in a row.

“Delinquencies on office properties enjoyed a bit of a reprieve this past month, though it is not likely to last,” said Mary MacNeill, managing director at Fitch Ratings.

About 42 office loans valued at $512 million together returned to performing status, improving the segment’s delinquency rate. Meanwhile, the hotel sector had 11 new loans valued at $280 million listed as newly delinquent, pushing the segment’s delinquency rate higher.

The multifamily CMBS loan delinquency rate fell from 11.64% in June to 10.89%, Fitch said. Hotel CMBS delinquencies also hit 11.46% last month, up from 11.22% in June.

Industrial CMBS loans declined to an 8.68% delinquency rate in July, compared to 9.93% a month earlier. Office delinquencies also declined to 8.43% from 8.58% in June.

Retail delinquencies also dropped, hitting 7.40% last month, compared to 7.67% a month earlier.

Most Popular Articles

NAR bans “pocket listings”

The National Association of Realtors board of directors voted 729-70 on Monday to ban the controversial practice of “pocket listings.”

Nov 12, 2019 By

Latest Articles

Guild Mortgage promotes 3 employees to top positions

Guild Mortgage, an independent mortgage lender, announced late last week that it has promoted three senior members of its leadership team as it continues to grow.

Nov 19, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please