Commercial Loan Modifications (Basically Unheard of Prior to 2009) Gained Some Traction in 2009-2010 — But Almost 1 in 10 Loans Remains in Default — Bloomberg
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Commercial loan modifications, which essentially were unheard of prior to 2009, occurred on 354 commercial properties in the first 11 months of 2010..
- While commercial loan modifications tallied 354 loans in 2010 representing $15.6 billion of loans, that is less than ½ of 1 percent of the approximate $3.5 trillion in total commercial real estate loans in place. Of the total loans, an estimated $400 billion is due to refinance in each of the 12 month intervals in the next few years.
- In all of 2009 only 216 commercial loans were modified totaling $7.06 billion.
- Trepp reported in December that the CMBS delinquency rate was 9.2 percent to an all-time record. This rate climbed 35 basis points in November and 27 basis points in December.
- Commercial loan mods are expected to grow further in 2011.
I guess that the phrase “A rolling loan gathers no loss,” is being tested.
Commercial mortgage modifications become huge trend in just two years – housingwire.com