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DBRS Morningstar Monthly Highlights - August Remittance

DBRS Morningstar presents the Monthly Highlights report, which covers CMBS market activity and performance for conduit and SASB loans (excluding agency loans). In August:

-- The delinquency rate set another low since the onset of the pandemic in March 2020, tumbling 33 basis points (bps) to 5.35%.
-- The delinquency rate has declined for 14 consecutive months and is down 389 bps from a year ago.
-- The special servicing unpaid principal balance and special servicing rate fell to $43.2 billion and 7.78%, respectively, but they still sit well above the lows of $13.41 billion and 2.59% set in February 2020.
-- The volume of both liquidated loans and losses rose sharply in August, hitting levels not seen since March 2020, with retail accounting for the bulk of August's losses.
-- The payoff rate of maturing commercial mortgage-backed security loans leapt 14.7 percentage points to 70.6% in August from 55.9% in July on the back of a few large unexpected hotel and retail loan payoffs.
-- The year-to-date payoff rate stands at 54.5%, slightly ahead of 2020’s 41.2% payoff rate. More than $3 billion is scheduled to mature through the end of the year and we expect the payoff rate to finish the year between 55% and 60%, based on depressed cash flow for many hotels and retail properties.