U.S. CMBS Delinquency Rate Climbs In April As Pre-Crisis Loans Mature
CMBS loan delinquency rates continued their upward climb in April, reaching $2.5B.
The delinquency rate for U.S. CMBS loans stands at 5.5%, up 15 basis points from March, according to the latest Trepp report and considerably higher than its multi-year low of 4.15% in February 2016.
The delinquency rate is still far below its record high of 10.34% in July 2012, but Trepp said the rate is unlikely to fall anytime soon as pre-crisis loans continue to mature each month. Many of these loans were issued just before the crash and benefited from very liberal underwriting standards, but as lenders continue to tighten their standards, experts say many of these loans will not qualify for refinancing.