Fitch: CMBS 2.0 Delinquencies Relatively Low—for Now

Although Fitch has been worried about loosening underwriting standards in the commercial mortgage-backed securities market, it finds that so far delinquencies for CMBS 2.0 “remain virtually nonexistent.”

Delinquencies for CMBS issued after 2009 in May were just 0.03%, in contrast to 2006-2008 CMBS, which had a delinquency rate of 11.75%, and 6.75% for deals from 2005 and prior.

Overall, these average a 7.37% delinquency rate for all CMBS combined, up from 7.44% the previous month.

So far most of the post-2009 delinquencies stem from one seasoned deal, LStar 2011-1. Outside of deals backed by loans that were seasoned or nonperforming to begin with, CMBS 2.0 deals where there are or may be concerns include GSMS 2012-GC6, FREMF 2011-K14, WFRBS 2011-C3 and FREMF 2011-K10.