The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) decreased 15 basis points (bps) to 7.6% in April from 7.7% in March, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 8 bps.1
The multifamily sector’s distress rate increased 60 bps, marking the second consecutive monthly increase. Loans whose borrowers failed to secure Housing Finance Corporation (HFC) tax exemptions (or Public Facility Corporation exemptions) in Texas were one of the main contributors. Notably, the $53.8 million The Riley loan (BBCMS 2024-C26) became delinquent this month after transferring to special servicing in January. The failure to obtain the HFC exemption triggered a borrower obligation to pay down the principal balance of the loan, which the borrower failed to do, leading to the special servicing transfer. The $55 million Texas SH Portfolio (across two…
Log in or Subscribe to KBRA Premium to view this report.
Trusted Ratings. Actionable Intelligence.
With a KBRA Premium subscription, you gain full access to KBRA’s authoritative ratings, deep research, and industry-leading analytics. Built for market professionals who require clarity, context, and confidence in every decision.