Trepp, a leading provider of information, analytics, and solutions to the structured finance, commercial real estate (CRE), and banking markets has released its quarterly report of bank portfolio loan performance in commercial real estate, multifamily, and construction.
NEW YORK, Dec. 19, 2019 /PRNewswire-PRWeb/ -- Trepp, a leading provider of information, analytics, and solutions to the structured finance, commercial real estate (CRE), and banking markets has released its quarterly report of bank portfolio loan performance in commercial real estate, multifamily, and construction. The second quarter 2019 results show that while overall delinquency rates are low, construction loan delinquencies have shown steady increase in the last four quarters.
The Trepp Anonymized Loan Level Repository (T-ALLR) Benchmark Report provides risk rating, delinquency rates, and other performance metrics for $167B in outstanding loan balances. The T-ALLR 90 days+ delinquency rate for bank construction loans increased to 0.19% by mid-year 2019. The seriously delinquency rate for construction loans has increased for several consecutive quarters. Construction loans account for 23% of active T-ALLR loans.
"Overall credit performance for bank portfolio loans remains strong with delinquency rates very near historical lows, especially for loans on multifamily properties," according to Russell Hughes, vice president who manages Trepp's data consortia initiatives. "But, we have observed another uptick in delinquencies for construction loans, pushing the 90+ rate to the highest sustained level since early 2014," Hughes said.
Income-producing CRE is the largest segment with $83B in active loans and a 90+ delinquency rate of 0.07%. Multifamily loans, which represent nearly a third of the loan population, had a 90+ delinquency rate of 0.06%.
The T-ALLR Quarterly Benchmark Report analyzes loan performance across a number of data points including delinquency, CRE property type distribution, average loan size, interest rate spread, balance-by county, maturity year, and origination quarter and year. The report, which is generated from Trepp's managed bank loan data consortium, captures CRE and commercial and industrial (C&I) data from participating commercial banks. The T-ALLR data is anonymized and aggregated to provide insights into trends and pockets of risk while protecting the security and anonymity of the consortia participants.
Trepp, founded in 1979, is the leading provider of information, analytics, and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the web-based tools and insight they need to increase their operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp is wholly-owned by Daily Mail and General Trust (DMGT). For more information, visit http://www.Trepp.com.