Trepp CMBS Delinquency Rate Stable at Year's End

NEW YORK CITY – Trepp LLC reports the U.S. CMBS delinquency rate stayed the same in December from a month earlier at 9.71%.

The firm states that after months of volatility, the delinquency rate for U.S. CMBS commercial real estate loans has shown some stability. Trepp in its report distributed on PR Newswire states that from early 2012 through the end of the summer, the CMBS delinquency rate bounced around considerably.

The high number of five-year loans securitized in 2007 that were unable to refinance caused large movements in the delinquency rate during the first six months of the year. With these troubled loans now behind the market and the next wave not coming due until 2014, rate movements should be modest in the near future, Trepp officials stated. Forward-looking data suggests the rate will see further improvement in the coming months. Special servicers are continuing to resolve non-performing loans and new CMBS deals are being added to the index, diluting the pool of non-performers, they say.

The number of newly delinquent loans decreased from November to December, totaling approximately $3.2 billion last month. While there were fewer new delinquencies, the number of delinquent loans resolved with losses also decreased, with a little more than $1.1 billion resolved. Office was the only major property segment to see a higher delinquency percentage in December. Loans backed by offices saw their rate jump 29 basis points.