While retail and hotel 60-89 day delinquencies and transfers to special servicing continue to spike, we are starting to see two other trends. First, the number of late payment loans (Chart 1) are continuing to move lower this week after the initial severe upward movement; the expectation is that it will reduce the number of loans moving through the delinquency pipeline. The number of modified loans (Chart 2) however, particularly in retail and hotel, have started to increase. This is consistent with REIS’s relatively grim outlook for these two property types, given the concentration of distress driven by the COVID-19 crisis. One would expect a steady progression of modifications going forward. In looking at the CREFC Loan Modification templates, several are allowing uses of reserves for debt service and waiving certain covenants rather than a traditional payment forbearance.