According to Trepp, there was a rise in CMBS loan losses during September. A total of 15 loans were resolved, resulting in $252.5 million in losses and an average loss severity of 55.26%. This is significantly higher than the $47.2 million reported for August.
The disposed balance over the past 12 months decreased from $277.7 million to $266.3 million, while the average loss severity for this period increased slightly from 63.28% to 63 .54%. In September alone, loans with losses greater than 2% had an average loss severity of58 .75%, compared to55 .20%in August.
Trepp also noted that the running average loss severity for loans with losses greater than2 %overthe last12months was65 .97%, which is slightly higherthanthe previous month’s movingaverageof65 .97 %. Overall,C MBSloanlosses have seenan increaseinSeptember accordingtoTrepp’sreport.
