Commercial mortgage security defaults on the rise

Commercial
mortgage-backed securities loan delinquencies increased in December to
.88 percent from .64 percent in November. Ratings firm Fitch Ratings
said the increase was due to defaulted loans with outstanding balances
of $100 million. November’s rating increased from October because of loan
defaults of $70 million. Fitch said the accelerated pace of defaults
seen in the fourth quarter will continue into this year, bringing the
index to about 2 percent at the end of the year.