CMBS Late-Pays Post Fifth Straight Increase

Trepp headquarters in New York City; the firm reports mixed sector-level results for July delinquencies.

NEW YORK CITY—CMBS delinquencies, while still well below the all-time high set four years ago, continue to move upward after reaching a multi-year low this past February. Trepp LLC said Tuesday that the late-pay rate for securitized mortgages ticked upward by 16 basis points to 4.76%. It marked the fifth consecutive monthly increase in CMBS delinquencies.

July’s rate is 66 bps lower than the year-ago level and 41 bps below the delinquency level as 2016 began. However, it has increased by 61 bps from February’s multi-year low of 4.15%, which was reached after the resolution of the $3-billion Peter Cooper Village/Stuyvesant Town loan. The all-time high as measured by Trepp was 10.34% in July 2012.