“The rising delinquency trend in commercial mortgage-backed securities continued for all property sectors last month.

The hotel sector overtook multifamily delinquencies in the commercial mortgage-backed securities market last month, said Fitch Ratings, New York. Fitch said hotels, with a 16.5 percent increase from the previous month, had a 6.81 percent overall delinquency rate followed by multifamily at 6 percent and retail at 3.55 percent.

Fitch’s index showed continued underperformance in hotels combined with job losses and subsequent office loan defaults that increased CMBS delinquencies 28 basis points to 3.86 percent.

Moody’s Investors Service, New York, said the hotel sector had the largest increase in October, up 123 basis points to a 6.2 percent delinquency rate, the second month in a row it posted the largest increase. Multifamily remained the worst performing property type with a 6.47 percent rate, a 38 bp increase from September.”

You can see the rest of the article here: http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=9064#

Once again this news highlights that we’re in for a long downward ride, making it critical for brokers to reach out to Remington to help find fresh approaches to restoring capital for underperforming commercial properties, including hospitality. We have the best access to commercial capital, even in these tough times.

Thanks, Andy

Andy Bogdanoff, Chairman of Remington