The ratings service expects commercial MBS loan delinquencies will reach between 4.0% and 4.5% by year-end 2023. S&P Global Ratings, meanwhile, said CMBS delinquencies crept up 5 bps in November.
Despite a rebounding travel economy, some properties are still experiencing lower net cash flow and will likely be pinched by rising rates when it comes time to refinance.
FirstKey Homes is set to issue an $871.6 million deal backed by loans on 1,827 income-producing properties, while Bridge Single-Family Rental Fund IV Aggregator is prepping its first SRF securitization.
The CMBS delinquency rate will be steady through the end of the year, Fitch Ratings said, before deteriorating in 2023. Meanwhile, KBRA found that most of the single-borrower CMBS loans in default developed performance problems during the height of pandemic lockdowns.
Securitization of office-property mortgages fell to its lowest level in 10 years, while retail and lodging also saw big declines in the third quarter. Agency multifamily MBS issuance held up better, paced by a modest gain in Freddie production. (Includes two data charts.)
New York-based Basis Multifamily Finance becomes the first minority/women-owned business enterprise in Fannie Mae’s Delegated Underwriter and Servicer Program.
If commercial lending rates stay about where they are now, a quarter of loans that expire within the next year will need to either bring in 50% more income than they are currently or reduce their debt by a third.
Super-senior classes of conduit CMBS transactions should be resilient if office loan values fall, but the lower end of the capital stack may not hold up as well, according to S&P Global Ratings.
Agency single-family MBS production continued to erode in the third quarter despite a modest pickup in purchase loans. Meanwhile, issuance fell sharply in the commercial MBS and ABS markets. (Includes three data charts.)
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