CMBS in Special Servicing May Double
New York-Close to $500 billion or nearly 6% of U.S. commercial mortgage-backed securities are currently in special servicing and that amount could double by the end of the year, according to Fitch Ratings.
"The resources of special servicers will continue to be stretched, which will intensify scrutiny on their preparedness," said managing director Stephanie Petosa.
"Compounding the problem is that many of these loans expected to default are large and complicated loans," the executive said.
However, Fitch said it does not expect to see the same rate of growth in commercial mortgage-backed securities delinquencies, which it expects to exceed 5% by the end of 2009.