Trepp CMBS Loss Analysis: Volume Drops, Loss Severity Up Slightly

NEW YORK, NY -- After a near-record amount of loan liquidations in July, August saw volume cut in half. September saw another drop, falling well below the trailing 2.75 year average. September liquidations totaled $870 million, relative to the 12-month moving average of $1.26 billion and 20% below August’s $1.09 billion.

September loss severity registered 43.30%, up from August’s 40.90% but below the 12-month moving average of 43.99%. 

The number of loans liquidated in September was 92, resulting in $376.78 million in losses. The liquidations translated to an average disposed balance of $9.46 million, below the 12 month average of $11.29 million. 

Since January 2010, servicers have been liquidating at an average rate of $1.18 billion per month.

For a complete 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