CMBS unpaid balances reach $62.19 billion, CRE CDO delinquencies up

The delinquent unpaid balance within commercial mortgage-backed securities is more than double a year ago and 28 times higher than March 2007.

In its monthly delinquency report, Realpoint said the delinquent unpaid balance for CMBS last month rose 1.3% to $62.19 billion from $61.39 billion in August. The gain of $801.2 million in September is higher than the previous two months, but below the average of $3.14 billion a month during the first half of 2010, according to Realpoint. A year ago, the delinquent unpaid balance was $31.73 billion.  The September delinquency ratio of 8.04% rose slightly from 7.93% a month prior and is up substantially from 3.94% a year earlier, according to Realpoint. The research firm said the current ratio is 28 times higher than the record low of 0.283% in June 2007.

“The continued increase in both delinquent unpaid balance and percentage is now being impacted by the rapid growth in liquidations on a monthly basis and a potential slow-down in the reporting of new delinquency for the remainder of 2010,” according to Realpoint analysts…….

Meanwhile, Fitch Ratings said delinquencies within collateralized-debt obligations in commercial real estate loans rose 12.9% last month.  Analysts said loans secured by office and multifamily properties were more than 70% of the 19 new delinquencies last month within rated CREL CDO, including eight term defaults, seven matured balloons and four credit-impaired securities.  Click here for full article….