Abstention plans drop below 5%

The total number of loans now forborne fell by nine basis points, from 5.05% of managers’ portfolio volume to 4.96%, according to the latest Mortgage Bankers Association (MBA) forbearance and call volume survey. The MBA estimates that approximately 2.5 million US homeowners are currently on forbearance plans. “The share of …

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Behind the jump in valuation reduction amounts

A good way to track CMBS loan losses is to track Appraisal Reduction Amounts (ARAs). Recent figures from the Kroll Bond rating agency may therefore be revealing. Kroll reported that 409 ARAs have been completed since the start of the year through November 2020 on CMBS 2.0 conduit transactions. For …

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