Although the latest downward drop in the commercial mortgage-backed securities delinquency rate tracked by Fitch Ratings was relatively milder than it was the previous month, the company said there is a “huge modification on the horizon” that may cause it to drop more precipitously in the future.

CMBS late-pays in August fell 10 basis points to 6.68%, a milder decline than the record 40 basis point month-to-month drop experienced in July, according to Fitch, which tracks delinquencies using a CMBS index containing 1,736 loans totaling $26.3 billion that are at least 60 days late.

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