CRE Finance Council is a trade association that is...

  • Dedicated exclusively to the over $5 trillion commercial real estate finance industry
  • Committed to promoting strong & liquid debt markets across platforms
  • The meeting place for industry professionals
  • The platform for establishing best practices, industry standards & federal policy
  • Comprised of 300+ institutional and 18,000+ individual members

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CREFC's Compendium of CRE Commercial and Multifamily Real Estate Statistics

September 30, 2022

CREFC is pleased to provide its Compendium of Commercial and Multifamily Real Estate Finance Statistics, a compilation of data on the current state of the CRE debt capital markets, for the second quarter of 2022. The report tracks data on a quarterly basis across various categories including securitized and balance sheet lending, the CRE property markets, and key economic indicators impacting the CRE finance industry.

CRE Debt data included:

  • Securitized Debt Issuance
  • CRE Mortgage Debt Outstanding
  • Private-Label CMBS Issuance Post-Crisis
  • CMBS 2.0 Credit Comparison
  • CMBS Rankings: Loan Contributors, Servicers, B-Piece Buyers, and Bookrunners
  • CMBS 2.0 Subordination and Pricing Spreads
  • Balance Sheet Lending Spreads
  • Life Company Lending
  • CMBS Delinquency and Special Servicing
  • U.S. Bank and Life Company Delinquency
  • Multifamily Delinquency Across Lender Types
  • Loan Originations and Maturities by Lender Type

CRE Property Data included:

  • Quarterly Property Sales Volume
  • Quarterly Sales by Property Type
  • Cap Rates by Property Type

Economic Indicators Data included is:

  • Household Formation and Homeownership Rate
  • Housing Starts and Permits
  • Multifamily Supply
  • Vacancy Rate and Change in Effective Rate
  • Annual Value of Construction Put in Place
  • CREFC Board of Governors Sentiment Index

And much more.

Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.

Contact 

Raj Aidasani
Senior Director, Research
646.884.7566
raidasani@crefc.org
Report available to members today. 
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2022 CRE Finance Council. All rights reserved.
CREFC's Compendium of CRE Commercial and Multifamily Real Estate Statistics
September 30, 2022
CREFC is pleased to provide its Compendium of Commercial and Multifamily Real Estate Finance Statistics, a compilation of data on the current state of the CRE debt capital markets, for the second quarter of 2022. The report tracks data on a quarterly

News

CREFC's August 2022 Monthly CMBS Loan Performance Report

September 27, 2022

CRE Finance Council has released a report on CMBS loan performance for the month of August.*

Key takeaways:

DELINQUENCY RATE DROPS BELOW 3%, LOWEST POST-COVID

 

  • Following a 15 basis point decline in July, the delinquency rate fell an additional 8 basis points (bps) in August to 2.98%; This is the first time the rate has been below 3% since before the pandemic
  • Despite the second consecutive monthly decline, the delinquency rate over the next few months may be volatile given the challenging macro environment, as well as the new landscape for lenders in refinancing loans at higher rates and higher cap rates and thus lower asset valuations
  • August’s delinquency rate is 733 bps lower from its peak of 10.31% in June 2020 and is the lowest since April 2020 (2.09%) – before the impacts of the pandemic were first reflected in the data

SPECIAL SERVICING RATE NOTCHES FIRST INCREASE IN TWO YEARS

  • Uptick in Special Servicing Volume: Loans in special servicing rose 12 basis points in August to 4.92%, the first increase following 22 consecutive monthly declines. While the rate remains well below its high of 10.48% in September 2020, the height of the pandemic, higher benchmark rates, and the real risk of an economic slowdown suggest asset valuations may be on the decline.
    • Retail and multifamily loans drove the SS increase, rising 114 and 67 bps to 11.03% and 1.90%, respectively. All other property types saw decreases.
    • Current tally of SS loans is ~$31 billion of specially serviced loans vs. ~$14 billion at year-end 2019, pre-pandemic
  • According to BofA Global Research, as of August 2022:
    • 419 loans across 258 conduit CMBS transactions (outstanding balance of $9.4 billion, 2.5% of the outstanding conduit universe) had delinquency statuses of in-foreclosure or REO; and
    • Additional 250 loans in 186 conduit CMBS ($6.9 billion, 1.8% of outstanding conduits), mentioned foreclosure/dual tracking in servicer commentary
      • ~41% backed by retail and ~26% hotel; 2014 and 2015 vintage loans most impacted
  • Outlook: While too early to declare a trend, uptick in August special serving rate may reflect the challenges of refinancing loans in current rate and economic environment. We anticipate some increase in loans transferred to SS in coming months.

AUGUST REMIT REALIZED LOSSES

  • 12 loans across 14 CMBS transactions were liquidated with realized losses totaling $187.9 million in the August remit period

 

 

 

*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $633.9 billion: 60.7% ($384.7B) conduit CMBS, 39.3% ($249.2B) single-asset/single-borrower (SASB) CMBS.

Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.

Contact 

Raj Aidasani
Senior Director, Research
646.884.7566
raidasani@crefc.org
DELINQUENCY RATE DROPS BELOW 3%, LOWEST POST-COVID
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2022 CRE Finance Council. All rights reserved.
CREFC's August 2022 Monthly CMBS Loan Performance Report
September 27, 2022
CRE Finance Council has released a report on CMBS loan performance for the month of August.

News

Bank CEOs on Capitol Hill

September 26, 2022

Last week, the seven largest U.S. retail banks appeared in marathon hearings before the House Financial Services Committee and the Senate Banking Committee. The witnesses included CEOs of Bank of America, Citigroup, JPMorgan Chase, PNC, Truist, U.S. Bancorp, and Wells Fargo.

What they're saying: Overall, the hearings were a mix of bipartisan praise and criticism on a number of topics. Here are the topics most relevant for CREFC members:

  • ESG: Some Republicans criticized climate goals and banks taking a position to reduce financing for oil and gas. Conversely, some progressives criticized banks for not divesting from certain industries, including fossil fuels. The CEOs emphasized their commitment to sustainability while continuing to engage in energy needs.
  • Climate Regulatory Reporting: Ranking Member Pat Toomey (R-PA) questioned whether Congress authorized regulators to mandate climate reviews. While JPMorgan CEO Jamie Dimon said he personally did not think the Fed had that authority, he conceded the Fed could easily mandate banks to collect that. “They are my judge, my jury, and my hangman,” Dimon said.
  • Capital Requirements: Several Republicans asked about whether capital and reserve levels were constraining lending. Several witnesses said that while their banks are very well capitalized, the impact of stress tests and the current expected credit loss (CECL) will limit the ability of banks to provide credit and liquidity.
  • Nonbanks: The CEOs brought up the topic of nonbank financial institutions, including some of the possible regulatory arbitrage certain nonbanks have over regulated institutions (such as consumer mortgages). While they did not specifically urge for regulation in those spaces, they noted certain business activities need more oversight, such as when Zelle transactions are sent to nonbank accounts.
  • Diversity: The banks highlighted their ongoing efforts to diversify their workforce and serve diverse customer bases. While some Democrats urged them to do more, House Financial Services Subcommittee on Diversity and Inclusion Chairwoman Joyce Beatty (D-OH) offered measured praise for the progress they have made.

The bottom line: Unlike hearings of the past, there were not calls for breaking up big banks. Rep. Pete Sessions (R-TX) was the most effusive in his praise:

I'm glad we've got big banks. I'm glad we've got stable people. I'm glad we have professionals that get up and go to work, take care of the free enterprise system, take care of large companies and small companies.

Contact

David McCarthy
Managing Director, Head of Policy
202.448.0855
dmccarthy@crefc.org
Illustration of George Washington on a one dollar bill wearing 3-D glasses and holding popcorn
Unlike hearings of the past, there were not calls for breaking up big banks.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2022 CRE Finance Council. All rights reserved.
Bank CEOs on Capitol Hill
September 26, 2022
Last week, the seven largest U.S. retail banks appeared in marathon hearings before the House Financial Services Committee and the Senate Banking Committee.

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