Commercial Loan Delinquencies Sets New Record At 8.92%

Posted By on September 8, 2010

After two months of moderated growth in delinquent loans backing commercial mortgage-backed securities (CMBS), the delinquency rate in August increased 21 basis points to 8.92%, according to the analytics firm Trepp.

It’s an increase from the 8.71% measured in July and another new record. The August delinquency rate is more than double the 4.03% rate a year ago. Since the beginning of 2010, the delinquency rate has increased more than 200 bps.

“The August numbers may argue that the commercial real estate crisis is far from over,” according to the Trepp report.

While the amount of modifications on CMBS loans in 2010 has already passed the combined total of the last two years, the amount of serious-delinquent loans increased 20 bps in August to 8.15%. That includes loans in 60-plus day delinquency, foreclosure, REO or other nonperforming pools. A year ago, the rate of loans in serious delinquency stood at 3.08%.

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