...Loan resolutions in Fitch-rated U.S. commercial mortgaged-backed securities (CMBS) decreased approximately 28.5% in 2013 from 2012. By dollar amount, loan resolutions were only down slightly from 2012. Average loss severity increased slightly to 51.2% from 50.5% in 2012. The majority of resolutions are from the 2005-2007 vintages, which were the peak origination years and continue to have the highest default rates. Approximately 61.9% of all dispositions were through REO sales. Fitch Ratings expects the levels of 2014 resolutions to remain fairly constant and average loss severities to be stable relative to the 2013 levels as special servicers continue to resolve many over-leveraged peak vintage loans. Fewer Loans Resolved: CMBS special servicers resolved 872 loans totaling $16.4 billion in 2013, a decline from 2012 (1,219 loans; $16.6 billion). Resolution time for disposed loans increased to 30.4 months in 2013 from 23.3 months in 2012, as special servicers resolved many loans that had...
