Trepp: CMBS Delinquency Rate Increases Yet Again
Carlton Fields Executive Director of Financial Services Consulting, Brian Olasov, was quoted in the MBA Newslink article, “Trepp: CMBS Delinquency Rate Increases Yet Again.” The article explains the continuous growth of commercial mortgage-backed securities delinquency rate.
Olasov commented:
The market is witnessing ‘adverse selection’ as the loans that could have refinanced have already done so. We also have three immediately supportive trends in our favor and one longer term. First, balloon loans are still being taken out at higher than estimated rates. Second, there are indications that CMBS volume is starting to pick up, which mitigates the effect of diminishing CMBS outstanding. Third, even though net operating income growth has slowed measurably across most property types, it's still growth; the real estate recovery continues.
The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.