MARKET UPDATE BLOG

CMBS Past Due Rate Declines to 5.2%

April 23, 2014

The delinquency rate for commercial MBS loans dipped again last month, with the past due rate dipping to 5.16% on March 31, down 27bp from a month earlier according to Fitch. That followed a 46bp drop in February and continued two years of steady improvement int he key measure of CMBS credit quality.

About $1.8 billion of securitized loans dropped off the rating agency’s late-payment list during March after being liquidated, modified, or resolved in some way. Meanwhile, only $611 million of mortgages were added to the delinquency category.

Fitch’s index tracked $20.4 billion of loans in foreclosure, in maturity default or at least 60 days behind on payments as of March 31, compared to $21.6 billion a month earlier. Another $695 million were past due by 30-59 days, up from $649 million at the end of February.

(Via CMA)