Delinquency Rate Hits Record for Mortgage-Backed Commercial Loans

Loans tied to commercial mortgage-backed securities hit a record delinquency rate in March, with 9.42% of all such loans having missed payments, loan research-service firm Trepp LLC said.

The rate has been on an upward climb since the real-estate market began to turn in late 2007. Facing significantly lower values than when loans were taken out during the peak years of 2005-2007, a number of landlords have been unable to pay off loans as they come due.

The worst-performing sector is multifamily, with 16.2% of loans delinquent…

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