Special servicers resolve $63.5 billion of distressed CMBS
Special servicers resolved more than $63.5 billion in distressed commercial mortgage-backed securities from January 2010 to June 2011, Fitch Ratings said in a report Wednesday. Since 2007, Fitch said special servicers have resolved more than $82 billion in distressed CMBS, reporting an average recovery rate of 86%. For most of the larger loan balances, servicers are using modifications to fix those situations. "Special servicers are still wading through a formidable backlog of underperforming loans that are in need of a workout," said Stephanie Petosa, managing director at Fitch. The average modified loan is valued at $28.6 million compared to $9.6 million on liquidated loans, according to Fitch. "It is too early to determine what effect these modifications will have on final CMBS loan resolutions," said Petosa. Write to Kerri Panchuk.