For the 29th consecutive quarter, the California Commercial Loan Delinquency Ratio is below one half of 1 percent, according to the latest survey conducted by the California Mortgage Bankers Association.

The survey found 99.86 percent of the California commercial real estate loans serviced by 17 mortgage banking firms were either current or only one payment delinquent, unchanged from the Sept. 30th survey. This translates into a delinquency ratio of .14 percent, matching the three-year low ratio of Dec. 31, 2002. A year ago the delinquency ratio was .2 percent. Additionally, 15 of the 17 companies reported no loans more than 30 days delinquent.

Of the $72.3 billions of loans being serviced by the 17 California commercial mortgage bankers, $103.8 million, consisting of 17 individual loans, was two or more payments past due. By types of property, office-building delinquencies were .3 percent (compared to .34 percent three months ago), retail property loans were .12 percent delinquent (compared to .16 percent as of September 30, 2005) and loans on “other” properties were .53 percent past due (an increase from .46 percent three months ago). The $3.3 million of multi-family delinquencies represented less than .1 percent of the outstanding multifamily loans. There were no delinquent industrial, hospitality or mobile home park loans reported.

By number, the 17 delinquent loans represent .18 percent of the 9,453 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.


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