Commercial loan delinquencies rise in California

For the 21st consecutive quarter, the California Commercial Loan Delinquency Ratio is below one half of 1 percent, according to the Dec. 31, 2003, quarterly delinquency survey conducted by the California Mortgage Bankers Association.

The survey found 99.65 percent of the California commercial real estate loans serviced by 18 mortgage banking firms were either current or only one payment delinquent.

This translates into a delinquency ratio of .35 percent. This compares to a delinquency ratio of .29 percent three months ago and .14 percent a year ago. Seventeen of the eighteen companies reported no loans more than 30 days delinquent.

Of the $59.8 billions of loans being serviced by the eighteen California commercial mortgage bankers, $212 million, consisting of 21 individual loans, was two or more payments past due. The three largest loans, representing 40 percent of this total, were a $34.4 million loan on an office building, a $32.5 million loan on a hotel and a $17.5 million loan on a single purpose property.

The 21 delinquent loans represent .21 percent of the 9,954 commercial real estate loans included in the survey.

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.

Founded in 1955, CMBA is the California association representing the real estate finance industry before all government and regulatory agencies.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.