NewsLink Q&A: KBRA’s 2025 CMBS Outlook: Twin Peaks?

Kroll Bond Rating Agency just released its CMBS 2025 Sector Outlook, which forecasts issuance activity for the new year. MBA NewsLink interviewed two KBRA analysts about the current lending environment as well as factors that may affect property performance in 2025.

KBRA Says CMBS Appraisal Reductions Are Climbing

Kroll Bond Rating Agency, New York, reported that commercial mortgage-backed securities appraisal reduction amounts–ARAs–have climbed in tandem with delinquency rates.

CMBS Delinquency Rate Increases Moderately

The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities increased moderately in April to 4.67%, according to KBRA, New York.

MBA NewsLink Roundtable: Top Commercial Mortgage Servicing Issues to Watch in 2024

Commercial and multifamily mortgage loan originations were 49% lower in the third quarter of 2023 compared to a year ago and decreased 7% from the second quarter, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. While a full-year 2023 view will not be available for a little while, it was a down year.

KBRA: CMBS Delinquency Rate Ticks Upward

KBRA, New York, said the delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities increased 19 basis points in November to 4.4%.

CMBS Delinquency Rate Dips, KBRA Reports

The delinquency rate among KBRA-rated commercial mortgage-backed securities dipped four basis points in October to 4.21%, the rating agency reported.