The delinquency rate on loans included in U.S. commercial MBS inched up six basis points in April to 9.22%, according to a new report from Moody's Investors Service.
However, while late payments rose, the total dollar amount of delinquent loans slipped for the second straight month — to $56.4 billion from $56.5 billion in March.
The delinquency figures only apply to commercial MBS that are part of conduit or what Moody’s calls “fusion” transactions. Commercial whole loans residing on the balance sheet of depositories, insurance firms, pension funds and other investors are excluded from the calculation.
The rating agency noted that conduit and fusion loans outstanding fell by roughly $5 billion in April, which fed the increase in the delinquency rate.
During April, roughly $2.9 billion of commercial mortgages loans became newly delinquent, while previously delinquent loans totaling $3 billion became current again – either through workouts or dispositions.
The total number of delinquent loans decreased to 4,047 units in April from 4,097 in March, Moody’s said.