Industrial commercial mortgage delinquency, which sank more than a hundred-basis-points last month, led a decline in the monthly rate of past-due payments on securitized commercial real estate loans. Modifications on more than $0.5 billion in loans were responsible for the overall improvement. The only category to experience deterioration was hotel.
The 60-day delinquency rate for loans included in commercial mortgage-backed securities was 8.48 percent in July.
Late payments improved from June, when the rate was 8.62 percent. Delinquency has improved for two consecutive months.
Fitch Ratings, which reported the statistics in its U.S. CMBS Market Trends, attributed July’s decline to the modification of $515 million in CRE loans.
In July 2011, 60-day CMBS delinquency was 9.01 percent.
Among the five property types tracked by the ratings agency, hotel loans had the highest rate of past-due payments: 11.46 percent. Hotel delinquency increased from 11.22 percent in June and was the only category to deteriorate.
“Hotel CMBS delinquencies, falling for much of the last several months, stumbled in July with a 24-bp increase,” the report from the New York-based firm said.
The multifamily delinquency rate tumbled to 10.89 percent from 11.64 percent.
Securitized mortgages backed by industrial properties saw delinquency fall to 8.68 percent from 9.93 percent — the biggest drop of any property type.
Office loan late payments eased to 8.43 percent from the July rate of 8.58 percent.
“A closer look at the numbers shows that office CMBS delinquencies, increasing for much of this year, took a step back this past month with a 15-bp drop,” the report said.
The best-performing category was retail, with delinquency dropping to 7.40 percent from 7.67 percent in June.
