Fitch: CMBS Late Pays Still Rising

Delinquencies of loans in commercial mortgage-backed securities monitored by Fitch Ratings rose to 1.62% in the second quarter, and the rating agency is forecasting a delinquency level of 2.0% by the end of the year.In 380 Fitch-monitored transactions, loan delinquencies rose 23 basis points from 1.39% in the first quarter on the rating agency's CMBS Loan Delinquency Index, Fitch said. Increased delinquencies occurred on loans in all major property types except retail, where the delinquent balance fell from $764 million to $724 million in the second quarter, Fitch said. "While delinquent hotel and retail loans continue to dominate the index, making up 60% of the total delinquent balance, there have been substantial increases in the delinquent balances of office, industrial, and multifamily loans over the past three months," said Mary O'Rourke, a Fitch senior director. Fitch can be found on the Web at http://www.fitchratings.com.