Wednesday, May 23, 2012

CMBS conflicts to linger for another year via HousingWire

Distrust between commercial mortgage bond investors and special servicers, due to perceived conflicts, could remain for another year and even amplify as more loans fall into trouble.

The amount of delinquent commercial loans backing these bonds ticked down slightly in April to less than $8.2 billion, according to Michael Merriam, senior vice president of operational risk assessment at Morningstar Credit Ratings.

But take out CMBS issued by Fannie Mae and Freddie Mac, and the delinquency rate spikes. Even more trouble could be coming as loans originated during the housing bubble mature in the next few years.

Read more...CMBS conflicts to linger for another year | HousingWire

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