California Commercial Mortgage Defaults Triple; Still Very Low

The CMBA (California Mortgage Bankers Association) released its latest number. The data covered 10,794 properties and found that only 7 were delinquent beyond 30 days. The default rate, .06% is triple what it was last quarter, but still only represents a small number of properties.

In August of 2007, the CMBA Index hit a 5-year low of .03%.

This last quarter’s numbers included $96B worth of mortgages, and the amount of debt which was in default was $54M. You can read this as a tripling of the last quarters numbers, but the fact is that delinquency rate is in fact very low. Consider that during the S&L crisis of the early nineties, some commercial asset classes experienced delinquency rates north of 10%. An the MBA (Mortgage Bankers Association) numbers from late last year showed that 1-4 unit residential delinquency rates were north of 5%, the highest level in over 20 years.

Similar Posts:

• Wachovia Issues Report on Commercial Real Estate
• With Office Market Softening, Some Landlords Mull Reducing Asking Rents
• YoY US and International Investment Sales Down Dramatically in Q1
• Second Quarter Silicon Valley Commercial Sales Activity
• Excerpt of Boston Properties Q2 Earnings Call; Touches on San Francisco, Silicon Valley, and Investment Climate

Leave a comment