Trepp sees lower commercial loan delinquency rates for 2Q
Trepp expects to see fewer delinquencies on mortgages for the second quarter. The provider of commercial mortgage-backed securities data awaits final figures for the three months ended June 30, but said it's estimating improvements in delinquency rates for all loan categories, including residential, construction, commercial and industrial. Trepp projects the delinquency rate on residential mortgages will drop to 12.6% from 12.8% in the first quarter. The delinquency rate on construction loans is expected to drop from to 17.1% from 18.2%, while delinquencies on commercial mortgages could fall to 5% from 5.4%, Trepp said. "Our detailed research through earnings reports and call report filings from smaller banks indicates that the recovery that began in mid-2010 has resumed, after stalling in the first quarter," said Matt Anderson, managing director of Trepp. "These results suggest that banks have stepped up efforts to shed problem commercial real estate loans." Earlier this month, Fitch Ratings reported delinquencies on loans underlying commercial-mortgage backed securities fell 17 basis points to 8.64% in June, suggesting loan performance in the segment is stabilizing. Write to Kerri Panchuk.