Calif. Commercial Delinquency Rate Drops to 0.23%: CMBA
The delinquency rate for commercial loans in California slipped 3bps from 0.26% to 0.23% in Q309, according to a survey conducted by the California Mortgage Bankers Association (CMBA). The survey spans 16 mortgage banking firms and more than $55bn of commercial and multi-family loans. Of the 6,453 loans surveyed, 19 had fallen into delinquency. The largest of the 19 delinquent loans is a retail property in Chula Vista, halfway between San Diego and Tijuana. That $33.1m loan rolled into foreclosure. More than $26bn in multi-family loans, or 0.07% of the total multi-family serviced amount, dropped into delinquency – a decrease from 0.13% in Q209. The delinquency rate increased for office buildings, reaching 0.48% from 0.23% in the previous quarter. The decrease in the California’s rates comes after reports of rising delinquencies in commercial mortgage-backed securities (CMBS) from both Barclay’s Capital and Realpoint. Write to Jon Prior.