Research - OCTOBER 27, 2014

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On-time CMBS payoffs hit lowest level since 2012 in September

by Reg Clodfelter

The percentage of maturing loans backing CMBS that paid off on time dropped significantly in September, down to 53.6 percent from 79.9 percent in August, according to Morningstar Credit Ratings. The September rate marked the lowest rate since October 2012, when it reached 53.2 percent, and was lower than Morningstar’s forecast for the month as 29 low-leverage loans totaling $207.5 million did not pay off as expected.

The on-time payoff rate had been above 75 percent for the past two months and three out of the past four. The delinquency rate also jumped up significantly in September, hitting 37.7 percent, compared with an 11.9 percent delinquency rate in August and an 18.2 percent delinquency rate reported in July.

The rough September pulled the cumulative on-time payof

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