NY loans weigh down multifamily CMBS performance
Mortgage LoanMultifamily loans backing commercial mortgage-backed securities are performing better than expected, but remain weighed down by the influence of rent-stabilized properties in New York, a Fitch Ratings report said Friday. “Multifamily loans, along with hotels, have rebounded by the most strides over the past two years,” said Huxley Somerville, managing director of Fitch Ratings. Somerville claims in a research note that multifamily loans in New York are driving total late-payment rates higher in the segment. In 2006 and 2007, issuers underwrote fixed-rate multifamily loans with stabilization plans, whereby rent stabilized […]
