NEW YORK CITY-A pool of troublesome loans originated at the height of the downturn is still wreaking havoc on the recovery of the CMBS market, pushing delinquency rates and losses higher. According to data from Trepp LLC’s March 2012 US Delinquency Report, over $9 billion worth of loans originated in 2007 came due in the first months of 2012, but only 48% were paid off at or prior to their maturity date.

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

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