There are now less than $70 billion of commercial mortgage-backed securities loans
The specially serviced CMBS loan universe fell to $64.2 billion as of March 31. But only $8 billion in loans transferred out of special servicing during 1Q13 compared to $12 billion in 4Q12. At the same time, $4 billion of loans went into special servicing in 1Q13, similar to 4Q12.
Fitch added 2012 saw the closest correlation between loans transferred into special servicing ($49.9 billion) versus loans transferred out ($47.1 billion).
“The pace of CMBS loans resolving slowed noticeably last quarter but on a positive note so did the pace of transfers,” said managing director Stephanie Petosa.
The average amount of time spent in special servicing for unsold real estate-owned loans is 31.4 months and for sold REO is 29.2 months. “Loans that spend more time in special servicing often have the highest loss severity,” said Petosa.
