Delinquencies among loans securing commercial mortgage-backed securities ended June at their lowest level since October 2010, according to Trepp LLC.
The rate was 8.65% in June, a decline of 42 basis points on a month-to-month basis. Trepp added this is the second best improvement in the delinquency rate since it first started publishing the monthly rate in the fall of 2009. It is also the first time since November 2010 that delinquencies were under 9%.
In May 2012, the delinquency rate was 10.16%.
Barclays reported it found
Trepp said loan resolutions have been the reason for the improvement, not just for June but for all of 2013 so far. There were $1 billion in resolutions during the month, up from May’s $858 million.
But there were about $1.25 billion in newly delinquent loans in June and those two canceled each other out in their respective effects on the delinquency rate.
Over $2 billion of loans cured in June and that alone resulted in a 42 basis point decline. Trepp noted that one large office loan that had been late in May was modified at the end of that month and now has been listed as current. That one loan contributed 13 basis points to the decline in the delinquency rate.
