NEW YORK CITY-A pool of troublesome loans originated at theheight of the downturn is still wreaking havoc on the recovery ofthe CMBS market, pushing delinquency rates andlosses higher. According to data from TreppLLC’s March 2012 US Delinquency Report, over $9 billionworth of loans originated in 2007 came due in the first months of2012, but only 48% were paid off at or prior to their maturitydate.

Of the remaining 52% of loans that remain outstanding from theclass of 2007, 49% are currently listed as non-performing balloonloans, and the properties of another 23% have already beenforeclosed upon or the special servicer is pursuing a strategy offoreclosure.

Describing phenomenon as "CMBS purgatory," ManusClancy, a senior managing director at Trepp, tellsGlobeSt.com that much needs to be done to relieve the pressure inthe market.