Pile of CRE Loans in Special Servicing

As of May, there are $32B worth of CMBS loans in “special servicing” which is more than double the amount in late-February. Loans can transfer into special servicing if a default occurs, a borrower threatens to default, or one looks likely. The CMBS market is worth approximately $550B and as of one year ago, it represented 13.5% of the U.S. commercial property debt sector, according to the Mortgage Bankers Association.

Late payments spiked to 11.8% in May on “conduit,” or multi-loan CMBS that have exposure to most property types, up from 8.6% in April and 2.6% in March.

#CMBS #MBA #Distressed #Covid19

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