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CMBS Delinquencies Decline

Delinquencies on commercial mortgage-backed securities declined to 0.68% for March, Fitch Ratings reports based on a delinquency index maintained by the credit rating agency. This represents a three basis point decline in delinquency over the last period, according to Fitch, and is "consistent with the robust performance of most U.S. commercial real estate markets in 2005."

Delinquencies linked to last year's Hurricane Katrina dropped 7% by loan balance and are now at $187.3 million. And real estate-owned properties linked to Katrina rose to 20.7%, up 2.6% from February.

Patty Bach, a Fitch analyst/senior director, said, "Katrina delinquencies are declining overall, but chronic delinquencies (90-day delinquencies and REO properties) now total $180.9 million (96.6% of all Katrina delinquencies), 6% ($9.8 million) higher than last month."

In dollar terms, the largest concentrations of foreclosures and delinquencies are located in Texas (23%) and Michigan (13%). Some Texas markets have benefited from the relocation of Katrina refugees, according to the rating agency.

Delinquencies on seasoned loans, which have more than one year of seasoning, declined eight basis points for March, Fitch reports. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com

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