News
Special Servicing Down
August 26, 2010
| In July, the number and volume of loans in special servicing decreased from the previous four months, fresh research from Trepp shows. But experts we talked to wondered if the stats might be an anomaly, as CRE defaults continue to increase. | |
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| Loans in special servicing have declined to about $2B this month, but Grubb & Ellis' Dirk Riekse and Charmaine Ali tell us that in general loan servicing is going up. They expect the large volume of 2005-2007 vintage loans maturing in 2010-2012 to create a continued flow into special servicing. Chicago is doing better than some other areas, like Florida, Arizona, and California, which have had a much greater share of specially serviced loans as those markets were especially hard hit in the recession. | |
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| Podolsky Northstar CORFAC International's Randy Podolsky, here with his brother Steven, is working as a receiver for several Chicago- area properties. He says special servicing is already overwhelming, but he's expecting it to get slowly busier as more commercial loans come due. He's shocked to see that special servicing is down, but he says there was also a light month in January before it went right back up again. While he's seeing some improvement in residential foreclosures, Randy anticipates several more months of hard times for commercial lending. | |
