Delinquencies on commercial mortgage-backed securities resumed their downward trend in May, falling three basis points to 0.66%, according to a Fitch Ratings loan delinquency index.Loans that have become real estate owned total 47% of the index, while foreclosures represent an additional 18%, the rating agency said. "Hotel properties represent a larger share of the REO category, 23%, than their 8% contribution to the outstanding CMBS universe, reflecting the sector's higher default probability due to the short-term nature of hotel leases," said Patty Bach, a Fitch senior director. Fitch can be found online at http://www.fitchratings.com.
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