SACRAMENTO, Calif., Oct 30, 2008 (BUSINESS WIRE) — Despite one of the most volatile quarters in memory for the credit markets and the real estate finance industry, the latest Quarterly Commercial Loan Delinquency Survey, conducted by the California Mortgage Bankers Association, found that California’s delinquency rate saw a marginal increase of only .02% – from .06% to .08%. Additionally, only nine loans, out of 11,140 included in the survey, were found to be more than 30 days delinquent. The nine loans total $83.2 million out of a combined total of $102 billion, the first time the survey has passed the $100 billion mark in loans surveyed.
While the third quarter’s delinquency rate is still near historical lows (the 11th lowest in the surveys 18-year history), the worldwide financial woes and the battered U.S. economy is certainly beginning to affect the performance of California commercial/multi-family loans, as the rate has doubled in the past year (.04% in 3Q 2007).
13 of the 17 companies participating in the survey reported zero loans more than 30 days delinquent.
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.
Seventeen 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.