Trepp Releases Q2 2021 Bank CRE Loan Performance Report: Results Are Not Bad, But Maybe Not That Great Either
Trepp released its Q2 2021 bank CRE loan performance report, built on the examination of trends in Trepp's Anonymized Loan-Level Repository (T-ALLR) data set, comprised of bank balance sheet loan data, a diverse set of loans totaling over $160 billion sourced from multiple banks.
NEW YORK, Sept. 28, 2021 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets has released the second quarter 2021 bank CRE loan performance report using its T-ALLR data. Instantly download the report here: https://www.trepp.com/cre-bank-loan-performance-q2-2021-tallr-report.
Overall commercial real estate (CRE) delinquency rates are declining after a modest rise in 2020, but individual property sectors – like the hardest-hit, lodging and retail – are experiencing much higher delinquency rates as a result of the intense recession during 2020.
Furthermore, banks' risk ratings indicate regional and property type concerns that are not uniform. The 2020 recession is also being felt in the lower volume of new commercial mortgage originations.
The analysis here is mainly built on the examination of trends in Trepp's Anonymized Loan-Level Repository (T-ALLR) data set. The T-ALLR data is comprised of bank balance sheet loan data, a diverse set of loans totaling over $160 billion sourced from multiple banks.
CRE mortgage delinquencies hit a recent peak of 1.3% in Q4 2020, as the pandemic disrupted economic activity across a broad range of geographies and industries. Since year-end 2020, the economic recovery that began in the second half of last year has helped bring mortgage delinquency rates down, with modest improvements in both Q1 and Q2 2021.
As of Q2 2021, the overall CRE delinquency rate stood at 1.1%, while the noncurrent (more serious delinquencies) rate stood at 0.9%, both still above their pre-pandemic levels.
The highest delinquency rates are in the lodging and retail property types, the two sectors within commercial real estate that were most severely impacted by the pandemic.
For more information, and to see the full report including data on Delinquent and Noncurrent Loans, Delinquency Rates by Property Type, Criticized Loans by Region, and Commercial Mortgage Origination Volume, click here: https://www.trepp.com/cre-bank-loan-performance-q2-2021-tallr-report.
Contact Trepp at [email protected] or 212.754.1010 and visit http://www.Trepp.com for more information.
About T-ALLR
The Trepp Anonymized Loan Level Repository (T-ALLR) provides banks with loan-level anonymized and summary data for CCAR, DFAST, and other PD, LGD, and benchmarking model development. The T-ALLR Data Feed is derived from data that is contributed by participant banks.
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase 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 subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
Media Contact
Hayley Keen, Trepp, Inc., 2127541010, [email protected]
SOURCE Trepp, Inc.
Share this article