From: Dustin Hobbs [dustin@cmba.com]
Sent: Wednesday, November 04, 2009 1:08 PM
To: 'Dustin Hobbs'
Subject: California Commercial Loan Delinquency Rate Declines to .23%

Importance: High

Attachments: 3rdQ2009DelinRelease.pdf

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FOR IMMEDIATE RELEASE                                                                                                                                                                                 Contact:

November 4, 2009                                                                                                                                         Dustin Hobbs, Communications Director

(916) 446-7100

Dustin@CMBA.com

 

California Commercial Loan Delinquency Rate

Declines to .23%

19 Loans Out Of 6,453 Surveyed Found Delinquent

 

SACRAMENTO – According to the Quarterly Commercial Loan Delinquency Survey, conducted by the California Mortgage Bankers Association, the delinquency rate for the past 3 months has dropped from 0.26% to 0.23%.  One year ago, the delinquency rate was 0.08%.  The survey, which includes 16 mortgage banking firms and over $55 billion of commercial/multi-family loans, found 19 loans delinquent out of 6,453 surveyed.  This was the 44rd consecutive quarter the ratio was below one-half of one percent (0.5%). 

As of three months ago, the largest of the 19 delinquent loans is a $33.1 million loan, now in foreclosure, on a retail property in Chula Vista. The next two largest delinquent loans are a $12.8 million loan on an office building in Contra Costa County and a $12.1 million loan on an office building in Ontario.

 

By number, the fourteen delinquent loans represent 0.29% of the 6,453 loans included in the survey. 

 

Peter Ulrich, CMBA Commercial Real Estate Consultant, noted that for the first time in the survey’s history, three smaller loans were delinquent on R&D properties.  Additionally, including this quarter’s survey, no surveyed loans have ever been found delinquent on mobile home properties.

 

The following table compares delinquencies by type of property.

For survey purposes, a loan is considered delinquent if it is two or more payments past due.  Loans in the process of foreclosure are included, regardless of the number of payments past due.

Sixteen income property mortgage bankers participated in the CMBA survey.  These companies originate and service loans on apartments, retail, industrial and other commercial properties for institutional investors such as life insurance companies and pension funds.

For more information, please contact Peter H. Ulrich, CMB, CMBA Commercial Real Estate Consultant at (949) 494-1254.

For media inquiries, or if you would like to receive CMBA’s quarterly commercial loan delinquency survey via e-mail, please contact Dustin Hobbs, CMBA Communications director at (916) 446-7100, or Dustin@CMBA.com.

Delinquencies by Property Type

 

September 30, 2009

 

(Dollar figures in millions)

 

 

Total Servicing

Amount Delinquent

% Delinquent      As of  9/30/09

% Delinquent     As of  6/30/09

Multi-family

$ 26,421.0

$ 18.9

.07%

.13%

Office Buildings

10,791.1

51.9

.48%

   .23%

Retail

7,448.0

38.3

.05%

.50%

Warehouse/Industrial

7,282.1

5.5

 *

  .35%

Hospitality

690.9

-0-

-0-

            1.33%

Mobile Home Parks

356.3

-0-

-0-

-0-

R & D Properties

387.3

7.2

1.86%

-0-

Other Properties

1,932.8

3.5

.18%

.09%

 

 

 

 

 

TOTALS

$  55,309.5

$ 125.3

.23%

.26%

 

* Less than 0.01%

 

The September 30, 2009 survey included $55.3 billion of California commercial mortgage loans being serviced by 16 mortgage banking firms.

 

_____________________

 

 

 

Founded over 50 years ago, the California Mortgage Bankers Association continues to be the premier advocate for the residential and commercial real estate finance industry, representing its members before all government and regulatory agencies. Headquartered in Sacramento, California, CMBA promotes fair and ethical lending practices through a wide range of educational programs, services, and industry publications. CMBA provides to its members a competitive edge by effectively aggregating political, economic, and marketing power. Its membership of companies includes all elements of real estate finance. For more information please visit www.cmba.com

 

###

 

 

Best Regards,

 

Dustin Hobbs

Communications Director

California Mortgage Bankers Association

"FINANCING REAL ESTATE FOR CALIFORNIA"

 

(916) 446-7100 VOICE

(916) 446-7105 FAX

(916) 704-2085 MOBILE

E-MAIL: dustin@cmba.com

980 Ninth Street, Suite 2120

Sacramento, CA 95814

 

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