Since 2009, over 500 CMBS loans—or 5% of previously resolved loans—have made at least one trip back to
Out of 9,723 loans resolved since that time, 519 loans have made a second trip to special servicing. Of these loans, 254 are still with the special servicer, while 265 have either been returned to master servicing or liquidated, analysts at the company found.
Fitch also discovered in its research that the majority of loans that return to special servicing were loans that had one-year maturity extensions in 2009 or 2010.
“These borrowers needed additional time to obtain refinancing and as liquidity returned to the market in 2011 and 2012 the financing became available,” researchers at the company said in the report, noting that they are continuing to examine the catalysts behind CMBS loans that defaulted more than once.
Fitch found the property type most frequently returning to special servicing has been multifamily (29%), followed by retail and office, both at 23%, and hotel at 11%.
“Not surprising, the vintages with the highest occurrence of loans returning to special servicing are 2006 and 2007 at 25% and 24%, respectively,” the company added, noting that the majority of loans that have transferred into special servicing since 2009 are from these vintages.
