The Trepp CMBS delinquency rate in June increased 18 basis points (bp) to 2.84%. The spike represents only the fourth monthly increase over the last two years. However, the increase is skewed by a hotel portfolio loan, the Innskeeper Portfolio, totaling $754 million that will show up as current next month. If the loan had been reported as current, the June delinquency rate would have been 2.68%, which is a 2 bp increase month over month. CMBS conduit loans closed after the Great Recession continue to perform very well. The delinquency rate excluding the Innskeeper loan is 0.80%, up 6 bp from May.
The CMBS delinquency tracked by Fitch shows similar results. Fitch says the delinquency rate for CMBS deals rated by the firm declined to 1.87% in June from 1.88% in May. According to Fitch, the delinquency rate is continuing to test new lows as pre-crisis loans get resolved. Of the $7.7 billion of overdue mortgages in Fitch’s index, roughly three-quarters were originated before 2009. The remaining legacy loans have a delinquency rate of 49.1%, while the rate for those originated since the credit crunch is less than 1%. The index tracks loans that are 60 days behind on payments, matured and nonperforming, or in foreclosure.