$6B in retail, hotel loans could go into distress

Although relatively few retail and hotel loans have fallen into distress, Moody’s Reis suggests that may change in a report that points to CMBS servicer commentaries describing a “significant pipeline” of properties that may go through foreclosure. Servicer comments mentioned foreclosure, deed-in-lieu or REO last month for more than $6 billion worth of retail and lodging loans, according to Moody’s Reis.