Commercial Real Estate Direct Staff Report
Thevolume of delinquent CMBS loans skyrocketed by 53 percent in June to $28.65billion.
That increase includes a$9.87 billion jump, to $11.24 billion, in the volume of loans that became at least 30-days late in June, the biggest-ever monthly increase. It could be explained in large part bythe classification as 30-days late of some $3.4 billion of loans on propertiesowned by General Growth Properties, which filed for bankruptcy in April.
Takeout the GGP loans and the overall delinquency rate is still a whopping $25.27 billion.
Asa result of the Chicago REIT's bankruptcy, it is making only interest paymentson its mortgages, even if they also require principal payments. While someservicers have classified loans their handling as delinquent as a result of themissing principal payments, others have classified them as performing. That couldindicate that they're either advancing principal payments or they're accounting for the loans differently.
Evenif you exclude the GGP loans, the delinquency rate has jumped tonever-before-seen levels. That's the result of the continued freeze in thecredit markets, wherefew maturing mortgages are able to refinance, and declining...
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