Late payments on loans behind commercial mortgage-backed securities rose, were more than 300 basis points worse than one year ago and are expected to continue deteriorating. During just September, hotel loans turned in the worst performance.
Last month, delinquency on securitized commercial mortgages rated by Moody’s Investors Service’s was 3.64 percent, a news release yesterday said. Late payments on the rated conduit and fusion loans jumped from 3.23 percent a month earlier.
“It was the largest monthly basis point change in the history of the data,” Moody’s said.
Moody’s noted that delinquency has soared from only 0.54 percent a year earlier.
Moody’s Managing Director Nick Levidy predicted that delinquency will move higher for at least the next several months.
Hotel loan performance was worst, rising 79 BPS from August to 4.97 percent, and multifamily late payments increased 58 BPS to 6.09 percent in September.
Delinquent retail property loans climbed 34 BPS to 3.76 percent, while commercial mortgages on industrial properties performed better, rising just 21 BPS to 2.67 percent last month. Office delinquency was up 29 BPS during September to 2.30 percent.
By region, delinquency in the South was 5.14 percent — the worst of any region. But in the East, the rate was 2.14 percent, lower than any region but still 30 BPS worse than in August.
Arizona’s 9.32 percent was the highest of any state, followed by Michigan’s 9.29 percent and Nevada’s 9.14 percent.
