The number of underperforming loans transferred to special-servicing status dropped in October, according to Fitch Ratings.
Through October, 383 loans totaling $4.3 billion were transferred into special servicing in transactions rated by Fitch. That's a decline from a $7 billion in each of the last two years.
Special servicers are also continuing to liquidate specially serviced assets, Fitch said.
The trend should continue into next year, if commercial real estate liquidity remains strong and interest rates remain low, Fitch said. If the trend continues, it should allow special servicers to focus more on surveillance.
