Wednesday, February 1, 2006 |
FOR IMMEDIATE RELEASE |
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Contact: Dustin Hobbs, Communications Director |
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(916) 446-7100 |
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California Commercial Loan Delinquency Ratio Unchanged at .14%
Fifteen of Seventeen Companies Report No Delinquencies
Sacramento , CA - For the 29th consecutive quarter, the California Commercial Loan Delinquency Ratio is below one half of one percent, according to the December 31, 2005 Quarterly Delinquency Survey conducted by the California Mortgage Bankers Association (CMBA). The survey found 99.86% of the California commercial real estate loans serviced by seventeen mortgage banking firms were either current or only one payment delinquent, unchanged from the September 30th survey. This translates into a delinquency ratio of .14%, matching the 3 year low ratio of December 31, 2002. A year ago the delinquency ratio was .2%. Additionally, fifteen of the seventeen companies reported no loans more than 30 days delinquent.
Of the $72.3 billions of loans being serviced by the seventeen California commercial mortgage bankers, $103.8 million, consisting of seventeen individual loans, was two or more payments past due. By types of property, office building delinquencies were .30% (compared to .34% three months ago), retail property loans were .12% delinquent (compared to .16% as of September 30, 2005) and loans on “other” properties were .53% past due (an increase from .46% three months ago). The $3.3 million of multi-family delinquencies represented less than .1% of the outstanding multi-family loans. There were no delinquent industrial, hospitality or mobile home park loans reported.
By number, the 17 delinquent loans represent .18% of the 9,453 commercial real estate loans included in the survey.
The following table compares delinquencies by type of property.
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.
Delinquencies by Type of Property
December 31 , 2005
(Dollar figures in millions)
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Total Servicing |
Amount Delinquent |
% Delinquent As of 12/31/05 |
% Delinquent As of 9/30/05 |
Multi-Family |
24,296.2 |
$ 3.3 |
* |
-0- |
Office Buildings |
17,773.3 |
53.6 |
0.30% |
0.34% |
Retail |
14,256.1 |
18.0 |
0.12% |
0.16% |
Warehouse/Industrial |
7,376.1 |
6.1 |
* |
-0- |
Hospitality |
3,447.1 |
-0- |
-0- |
-0- |
Mobile Home Parks |
689.7 |
-0- |
-0- |
-0- |
R & D Properties |
211.6 |
-0- |
-0- |
-0- |
Other Properties |
4,281.8 |
22.8 |
0.53% |
0.46% |
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TOTALS |
$ 72,331.9 |
$ 103.8 |
0.14% |
0.14% |
* Less than .1%
The December 31, 2005 survey included $72.3 billion of California commercial mortgage loans being serviced by 17 mortgage banking firms.
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.
For more information about CMBA's Quarterly Commercial Delinquency Survey, contact Peter Ulrich, CMB, CMBA Commercial Real Estate Consultant, at (626) 294-1058.
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Celebrating its 50th Anniversary, the California Mortgage Bankers Association is 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
