Loan delinquencies in commercial mortgage-backed securities accelerated in August after two months of slowing, according to Trepp LLC, New York. Treppwire reported CMBS loans 30 or more days delinquent, in foreclosure, or REO up 21 bp in August to 8.92% overall, following a 12 bp increase in July and a 17 bp jump in June. Despite last month’s increase, the rate remained below the 35 bp average monthly increase during the previous 11 months – after backing out the Stuyvesant Town impact in March. Delinquency rates increased 1.7% from February to May this year.
“The August numbers may give ammunition to those who argue that the commercial real estate crisis is far from over,” the report said.
Similarly, seriously delinquent loans of 60 or more days, in foreclosure, REO or non-performing balloons jumped 20 bp to 8.15%. Without defeased loans, the CMBS delinquency rate would increase to 9.49% overall. The highest delinquency rates occurred in 90-days delinquent, foreclosure and REO categories.