Non-securitized commercial mortgage debt continues to look pretty healthy compared to CMBS. The Mortgage Bankers Association, based here, reported in June that delinquency rates rose for CMBS during the first quarter, while for banks and life companies, they declined further from levels that are already low compared to securitized loans. And for legacy CMBS, more pain is on the horizon as Morningstar said last week that nearly half the securitized debt scheduled to mature over the next 12 months is already on its watchlist.
With a Q1 60-plus-day delinquency rate of just 0.14%, “The life companies’ numbers is extremely low and stayed low throughout the credit crunch and recession,” Jamie Woodwell, MBA’s VP of commercial/multifamily research, tells GlobeSt.com. During the same period, banks’ commercial and multifamily mortgage delinquencies increased, “but they have been coming in for a number of quarters as the economy has stabilized, demand for commercial real estate has stabilized and prices have begun to improve.”
Read more...GlobeSt.com - Late-Pays Fall for Banks, Rise for CMBS - Daily News Article