Sunday, November 10, 2013

Trepp Reports Percentage of Loans Paying at Maturity Dips after Hitting Multi-Year High in September




NEW YORK, NY -- The percentage of loans paying off on their balloon date slipped modestly in October to 68.6%.

The slide comes one month after the reading hit its highest level since December 2008, reaching 74.5%. However, the October payoff percentage is slightly above the 12-month moving average of 64.5%. (This number sums the averages of each month and divides by 12, there was no balance weighting across the months.)

By loan count (as opposed to balance), 68.1% of loans paid off, which is slightly lower then the September reading of 70.1%. The 12-month rolling average by loan count is now 67.5%.

The October percentage continues the recent trend of relatively higher payoff rates in 2013 compared to 2012. In 2012, many of the maturing loans were five-year balloons from the 2007 vintage. Most loans that are reaching their maturity now are 10-year balloons that were originated around 2003.

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