NEW YORK, NY -- According to the Trepp January Payoff
Report, the percentage of loans paying off on their balloon date has exceeded
60% for the fifth time in the last six months.
In February, 61.8% of loans
reaching their balloon date paid off--a decrease of about five percentage
points from the January reading.
The February rate of 61.8% is well above the 12-month moving
average of 49.2%. (This number sums the averages of each month and divides by
12, there was no balance weighting across the months.)
Six months ago, we noted that the payoff rate could move to
the upside for the remainder of 2012. We mentioned that loans reaching their
maturity date would likely be more heavily populated with loans from earlier
vintages, and that assets from that time frame were made with lower leverage
and more reasonable valuations.
The result should be better payoff numbers. Data from the
past six months has confirmed this trend.
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
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