Commercial loan delinquencies drop in California

For the 27th consecutive quarter, the California Commercial Loan Delinquency Ratio is below one half of 1 percent, according to the California Mortgage Bankers Association.

According to the June 30, 2005, Quarterly Delinquency Survey conducted by CMBA, 99.82 percent of the California commercial real estate loans serviced by 17 mortgage banking firms were either current or only one payment delinquent. This translates into a delinquency ratio of .18 percent, the second-lowest since December 2002 when it was .14 percent. 

The second-quarter delinquency ratio compares to a delinquency ratio of .17 percent three months ago and .33 percent a year ago. Fifteen of the 17 companies reported no loans more than 30 days delinquent.

Of the $64 billions of loans being serviced by the 17 California commercial mortgage bankers, $113.9 million, consisting of 11 individual loans, was two or more payments past due. Three loans, totaling $70.6 million, represent 62 percent of the 11 delinquent loans. They are a $38.8 million hotel loan, a $16.5 million retail property loan, and a $15.3 million office-building loan.

By number, the 11 delinquent loans represent .11 percent of the 9,616 commercial real estate loans included in the survey.

Sacramento-based California Mortgage Bankers Association is an advocate for the residential and commercial real estate finance industry.

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