KBRA Releases Research – Delinquency Rate Holds Steady but Appraisal Values Fall 30%

Kroll Bond Rating Agency (KBRA) releases a report updating commercial mortgage-backed security (CMBS) loan performance trends observed in the November 2020 remittance period.

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Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Monday, November 30, 2020
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Banking, Professional services, Finance, Finance, Money, Structured finance, Loans, Financial services, Mortgage industry of the United States, Mortgage, United States housing bubble, Commercial mortgage-backed security, Commercial mortgage, Mortgage-backed security, KBRA
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NEW YORK, United States
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KBRA AND KBRA EUROPE
Summary
Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report updating commercial mortgage-backed security (CMBS) loan performance trends observed in the November 2020 remittance period.
  • The November delinquency rate remained unchanged at 6.8% over the prior month among KBRA-rated U.S. CMBS.
  • Along with the performance trends, KBRA observed an average decline of 30.4% in appraisal values for nearly 600 specially serviced assets relative to appraisal values at loan origination, since the start of the pandemic.
  • The bigger fall in retail partly reflects a nearly 60% average decline in retail mall values.


Kroll Bond Rating Agency (KBRA) releases a report updating commercial mortgage-backed security (CMBS) loan performance trends observed in the November 2020 remittance period.

The November delinquency rate remained unchanged at 6.8% over the prior month among KBRA-rated U.S. CMBS. This is the fifth consecutive month that delinquencies either declined or were flat from an 8.2% June peak. In this report, KBRA provides observations across our $289 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.

Along with the performance trends, KBRA observed an average decline of 30.4% in appraisal values for nearly 600 specially serviced assets relative to appraisal values at loan origination, since the start of the pandemic. Lodging had an average decline of 27.8% versus retail’s average decline of 39.5%. The bigger fall in retail partly reflects a nearly 60% average decline in retail mall values.

Click here to view the report.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

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