There’s a good and bad news scenario in loans according to a CRED iQ report. Across Freddie Mac, Fannie Mae, Ginnie Mae, CRE CLO, and CMBS, both conduit and single-borrower large loan deal types, distress dropped for the first time in five months. The drop was 70 basis points, landing at 10.8% and breaking a streak of four consecutive record highs. However, office distress hit a new high of 19.3%.
The distress rate combines delinquency and specially serviced rates. That includes any loan with a payment status of at least 30 days delinquent or with a special servicer. They include non-performing and performing loans that did not pay off at maturity.
Other distress metrics also fell month-to-month. The delinquency fell from 8.9% in January to 8.0% in February. The special servicing rate dropped 20 basis points to 10.1%. A year ago, delinquency was 5.4%, and special servicing, 7.0%.
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