Tag Archives: CMBS

Although the improvement was slight, the drop in the delinquency rate for commercial mortgage-backed securities (CMBS) in September was still an improvement, and the decline marks the fourth straight monthly drop, Fitch Ratings reported Friday. The CMBS delinquency rate fell to 8.37 percent from August's 8.39 percent.

Commercial mortgage-backed security (CMBS) delinquencies have posted substantial declines over the past two months, according to Trepp. After falling 21 basis points in August, delinquencies decreased another 14 basis points in September, bringing the delinquency rate below 10 percent, just barely. The CMBS delinquency rate is now 9.99 percent, according to Trepp, and the agency predicts the rate should continue to decline over the next few months.

Ocwen Financial Corporation will purchase Homeward Residential Holdings, Inc. for $750 million, Ocwen announced Wednesday in a release. Ocwen will buy the Dallas-based servicer and originator from private equity firm WL Ross & Co. The breakdown for the transaction includes $588 million in cash and $162 million in Ocwen convertible preferred stock.

The population of CMBS loans handled by special servicers is declining, which could signal a turning point for the commercial real estate sector, Fitch Ratings said in a report Friday. As of June 30 of this year, the balance for CMBS loans shrunk to $80.5 billion, down from $85.5 billion in June 2011 and a significant drop from $92 billion in June 2010.

The CMBS delinquency declined again for the third consecutive month, Fitch Ratings reported Friday. The CMBS delinquency rate fell 9 basis points (bps) in August to 8.39 percent from 8.48 percent in July. The ratings agency explained increased loan resolutions helped improve the delinquency rate, with more loans exiting the delinquency index then entering.

The CMBS delinquency rate made a steep drop in August, marking the first fall since February 2012, according to Trepp. After five months of increases, the CMBS delinquency rate fell 21 basis points to 10.13 percent in August from 10.34 in July. The plunge in August is the largest since November 2011.

The slowing pace of workouts hasn't stopped CMBS special servicer volume from falling, Fitch Ratings reported. According to Fitch's weekly U.S. CMBS Market Trends newsletter, the balance of loans in special servicing as of June 30 was $80.5 billion, a drop from $83.1 billion at the end of 2011 and $85.6 billion in June 2011. This news comes despite a slowdown in resolutions in the year's first half, with 1,242 loans resolved in that time (compared to 1,556 in the first half of 2011).

An increase in loan modifications led to fewer delinquencies for commercial mortgage-backed securities (CMBS) in July, according to Fitch Ratings. The decrease in CMBS delinquencies is the second consecutive month of declines as CMBS delinquencies fell to 8.48 percent in July, a drop of 14 basis points (bps) from June's 8.62 percent. According to the ratings agency, two large loan mods helped bring down the past due rate - the $305 million Schron Industrial Portfolio and the $210 million Savoy Park.

The delinquency rate for commercial real estate loans reached another all-time high in July, according to a report from Trepp. Spiking up another 18 basis points, the CMBS delinquency rate stood at 10.34 percent, up from 10.16 percent in June and 10.04 percent in May. July's increase is the fifth monthly rise and means the delinquency level is up 97 basis points since February. The analytics company said the continued increase is due to a wave of five-year loans that matured in the first half of 2012 and could not refinance.

The aggregate value of Commercial Real Estate (CRE) loans as priced by DebtX saw both monthly and yearly increases in May, according to a company release.