The Registry, September 23, 2014
News that the commercial mortgage-backed securities delinquency rate increased six basis points to 6.1 percent in August after 14 months of declines indicate that troubled loans originated prior to the financial crisis are going nowhere fast.
According to CMBS researcher Trepp and other industry observers, not only did newly delinquent large loans on retail and industrial properties help push up the rate, but a low number of originations and a reduced amount of distressed asset liquidations in August compared with July also caused delinquencies to rise.
“These delinquency numbers have a lot of variables and aren’t something you can really bank on,” said Ann Hambly, founder and CEO of Grapevine, Texas-based 1st Service Solutions, an advocate for CMBS borrowers in loan restructurings and resolutions. “It’s not that the number of troubled loans are necessarily changing as much as what’s going on around them—loans coming in and those going out—that has been a diluting factor.”…