MortgageOrb: Trepp: CMBS Delinquency Rate At Record High
The U.S. commercial mortgage-backed securities (CMBS) delinquency rate set an all-time high in July, moving up 18 basis points (bps) to 10.34%, according to new data from Trepp LLC. This latest move puts the delinquency level up 97 bps since February and makes July the fifth straight month in which the rate has increased.
Trepp estimates that $59.5 billion in loans are currently delinquent, and approximately $1.4 billion in loss resolutions were recorded in July. Trepp attributes the removal of these loans from the delinquent-loan category to roughly 24 bps of downward pressure on the delinquency rate. Loans that were cured put an additional 40 bps of downward pressure on the rate. However, loans that were newly delinquent - totaling about $4.6 billion - put upward pressure on the rate of about 81 bps.
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