CMBS

Late payments on securitized commercial mortgages climbed sharply in December to a 14-month high, led by office buildings.

The $43.1 million SCR Notes Series 2016-MDN2, Class B, are linked to the credit risk of 68 multifamily mortgage loans originated between 1999 and 2016 with an unpaid principal balance of $863 million

Commercial real estate markets should continue to improve in 2017, though it remains to be seen how big of a role mortgage bonds will play in financing going forward.

A decade ago, regulators were warning that CRE exposure could lead to earnings and capital volatility. Fast forward to today and regulators are expressing similar reservations, warning that areas such as multifamily could become problematic. Bankers, however, say they believe the industry is better equipped to handle an economic shock.

Prima Capital Advisors has securitized a unusual portfolio of $301.3 million of commercial real estate holdings, according to Moody’s Investors Service.

Vornado Realty Trust is involved in its second single-property securitization of a premier New York office site this week.

The Mortgage Industry Standards Maintenance Organization, or MISMO, is proposing a standard for the maintenance and sharing of commercial and multifamily real estate rent-roll information.

Wells Fargo’s next commercial mortgage securitization follows a familiar pattern: it is characterized by low leverage, relative to transactions completed this year. And it relies on the inclusion of a pair of relatively high quality loans to boost the overall credit metrics of the pool.

A refinanced mortgage backed by the historic 85th Tenth Avenue building that’s the east-coast home to Google – as well as the New York birthplace of the Oreo cookie – is being securitized via Deutsche Bank and Wells Fargo.

Late payments on securitized commercial mortgages continued to climb in November, as they have for eight of the last nine months.