Level of specially serviced CMBS loans falls

CMBS loans in special servicing declined during the third quarter.

The total level of commercial mortgage-backed securities in a state of special servicing dropped during the third quarter, according to a report from Fitch Ratings.

In all, the level of CMBS loans involved with special servicing fell $6 billion to less than $75 billion last quarter. This was well below the level recorded in 2010, which was $91.7 billion, the report showed. Additionally, the level of assets per asset manager experienced a decline, as well. This fell to an average of 12 during the third quarter, lower than 2011's average figure of 20. Additionally, it is far lower than the average of 50 recorded two years ago.

While the figures are currently in decline, the report explained that this may not last forever. Property management companies may experience CMBS loans in special servicing increase in the next few years. This is because a large portion of loans will reach maturity between 2015 and 2017.

However, the report added that while a smaller loan pool for special servicers will likely be the norm for the time being, large changes may depend on recovery and interest rates.

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