Monday, January 7, 2013

Trepp December Payoff Report: Percentage of Loans Paying at Maturity Recedes

 NEW YORK, NY -- The percentage of loans paying off on their balloon date has exceeded 60% for the past three months. In December, the payoff rate dropped. The percentage of loans paying off in September, October, and November was 68.2%, 60.7%, and 62.6% respectively. Last month, 54.5% of loans reaching their balloon date paid off.

Despite the fall off, the December rate of 54.5% is well above the 12-month moving average of 47.0%. (This number sums the averages of each month and divides by 12, there was no balance weighting across the months.)

At the end of the summer, we mentioned that the payoff rate could move to the upside in the coming months. 
We noted that for the rest of the year, loans reaching their maturity date should be more heavily skewed to earlier vintages, as loans from that time frame were made with lower leverage and more reasonable valuations.
 The result should be better payoff numbers. The data from the past four months has confirmed this.

For a compete copy of the company’s news release, please contact:

Eric R. Gerard
Senior Vice President
Great Ink Communications
27 Union Square West, Suite 205
New York, NY 10001
(212) 741-2977

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