Trepp: A Slight Decline for CMBS, Multifamily


The delinquency rate on securitized multifamily mortgages fell 50 basis points in August, but the loans continue to be the worst performing property type in the commercial MBS market.

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Late this week Trepp LLC reported that the percentage of CMBS multifamily loans that are 30-days or more past due fell to 16.44% in August, compared to 16.94% the prior month.  A year ago the multifamily delinquency rate was 14.5%.

The second worst performing sector is lodging with a 13.8% delinquency rate.

Thanks to a decent performance from retail, office and industrial properties, the overall CMBS delinquency rate slid to 9.5% in August, down 36 basis points from July. 

“This is the second largest drop since the beginning of the credit crisis in 2008 and the third time the rate has dropped in the past four months,” Trepp analysts said.

However, the New York provider of CMBS information said commercial mortgage lenders are “pulling back” and CMBS investors have “turned very bearish.”  Trepp cites concerns about European banks and the U.S. economy for the reaction.

Daily Briefing | Friday, September 2, 2011

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