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CMBS Late-Pays Decline in July, Though More Loans Enter Special Servicing
Trepp’s CMBS delinquency rate posted its largest drop in more than four years during July, declining 72 basis points to 9.6%. However, Trepp also noted an increase in the percentage of CMBS deals in special servicing.
About 1.7% of loan delinquencies is represented by loans in the 30-day delinquency bucket while another 2.56% is now 60 days delinquent. Both of those numbers were sizable improvements from June. The 90-day delinquency rate rose from 0.29% in June to 2.65% in July.
The special servicing rate increased 121 bps to reach 9.49% in July. Trepp said this surge resulted mainly from an increase in the lodging and retail special servicing rates due to COVID-19.
The lodging special servicing rate clocked in at 24.30% in July, up from 20.47% in June. Retail special servicing came in at 16.04%, rising 180 bps from June after the previous month’s 493-bp increase.
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