Delinquent commercial mortgages reach record level during July

Commercial mortgage delinquencies rose during July.According to recent information released by Trepp LLC, the level of delinquencies for commercial mortgages during July reached record levels.Overall, those late on the payments for their commercial loans increased 51 basis points to a record 9.88 percent. The greater number of delinquencies comes after two months of declines, the company reports.Trepp analysts blame the increase on the way lenders report mortgages in foreclosure.”Much of the positive momentum that had been surrounding the CMBS market recently has now all but vanished in the past few weeks,” according to the statement from Trepp.Many borrowers have been falling behind on their payments due to a “revival of new debt sales,” which stumbled after many investors pushed back on their deal terms, Bloomberg reports. Now, Wall Street lenders could incur “hundreds of millions of dollars” in losses, the site relays.While many markets nationwide have struggled in terms of economic activity and delinquencies, the Houston real estate market has been steady. With more jobs being added, and thus, more companies needing loans for office space, the sector may remain out of the red.Courtesy of 2M Realty News

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