Tuesday, April 30, 2013

Trepp April Loss Analysis: Volume and Loss Severity Jump



NEW YORK, NY --After two months of relatively low liquidation volumes, April saw a spike in servicer activity, according to Trepp. 

The number of loans disposed with a loss in April ended up at 128. April's average loss severity came in at 45.80%, 6.2 percentage points higher than March's 39.65%.

April liquidations totaled $1.62 billion, relative to the 12-month moving average of $1.37 billion. The 128 loan liquidations resulted in $742 million in losses, translating to an average loss severity of 45.80%, above the 12-month moving average of 42.38%.

Since January 2010, servicers have been liquidating at an average rate of $1.17 billion per month.

Despite the surge in volume, the average liquidated loan size remained elevated as special servicers continued to handle large loans. The average size of liquidated loans in April was $12.66 million, lower than February's $13.22 million but above the 12-month average of $10.16 million.
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  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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