Friday, October 4, 2013

Percentage Up on Loans Paying Off on Balloon Date, Trepp Notes




NEW YORK, NY -- In September, the percentage of loans paying off on their balloon date registered 74.5%, according to the most recent data from Trepp.

This percentage is up more than two points from August's rate of 72.1% and is the highest reading since December 2008. 

At 74.5%, the September payoff percentage is well above the 12-month moving average of 63.9%. (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), 70.1% of loans paid off, which is slightly lower then the August reading of 72.2%. The 12-month rolling average by loan count is now 66.8%.

The September reading continues the recent trend of higher payoff rates compared to those of 2012. This is not all that surprising, however. 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.
 
For a complete copy of the company’s news release, please contact:


 Eric@greatink.com

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