Delinquency rates continue to rise for commercial-mortgage-backed securities loans in Central Pennsylvania, according to New York City-based research firm Trepp LLC.
In the Harrisburg area, there were three delinquent loans out of 53 total CMBS loans in November. That’s a delinquency rate of 4.2 percent, up from 3.3 percent a year ago.
However, there were 81 total loans a year ago, which explains the rate jump.
“The simple explanation is that nondelinquent loans are getting paid off, while the delinquent ones have yet to finalize a resolution,” said Sean Barrie, a research analyst for Trepp. “So even though no loans may become delinquent in a given month, the delinquency rate can still increase due to healthy loans being resolved because those loans are the denominator of the delinquency equation.”
In Lancaster County, one out of 32 CMBS loans were in delinquency in November for a 2.8 percent delinquency rate, according to Trepp. In November 2014, there was one delinquent loan out of 48, for a 2.39 percent delinquency rate.
In York-Hanover, the delinquency rate has jumped to nearly 4.3 percent, with one out of 32 CMBS loans in delinquency. Last year, it was one out of 47 loans, according to Trepp.
By comparison, the national delinquency rate has fallen to 5.1 percent from 5.4 percent a year ago.
Rates were under 1 percent until the end of 2008. They skyrocketed to 6 percent in 2009, to 9 percent in 2010 and peaked at 10 percent in July 2012 before retreating.