California Commercial Loan Delinquency Ratio Edges Up to 0.08%

SACRAMENTO, Calif.--(BUSINESS WIRE)--Despite one of the most volatile quarters in memory for the credit markets and the real estate finance industry, the latest Quarterly Commercial Loan Delinquency Survey, conducted by the California Mortgage Bankers Association, found that California’s delinquency rate saw a marginal increase of only .02% - from .06% to .08%. Additionally, only nine loans, out of 11,140 included in the survey, were found to be more than 30 days delinquent. The nine loans total $83.2 million out of a combined total of $102 billion, the first time the survey has passed the $100 billion mark in loans surveyed.

While the third quarter’s delinquency rate is still near historical lows (the 11^th lowest in the surveys 18-year history), the worldwide financial woes and the battered U.S. economy is certainly beginning to affect the performance of California commercial/multi-family loans, as the rate has doubled in the past year (.04% in 3Q 2007).

13 of the 17 companies participating in the survey reported zero loans more than 30 days delinquent.

The following table compares delinquencies by type of property.

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.

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.

For more information, please contact Peter H. Ulrich, CMB, CMBA Commercial Real Estate Consultant at (626) 294-1058.

For media inquiries, or if you would like to receive CMBA’s quarterly commercial loan delinquency survey via e-mail, please contact Dustin Hobbs, CMBA Communications director at (916) 446-7100, or Dustin@CMBA.com.

Delinquencies by Property Type
September 30, 2008
(Dollar figures in millions)
		Total Servicing		Amount Delinquent		% Delinquent As of 9/30/08			% Delinquent As of 6/30/08
Multi-family		$ 33,827.5		$ 61.5		.18	%		.07	%
Office Buildings		23,319.9		5.4		.02	%		.05	%
Retail		17,216.3		7.6		.04	%		.05	%
Warehouse/Industrial		11,675.7		-0-		-0-			-0-
Hospitality		6,088.1		4.0		.07	%		-0-
Mobile Home Parks		934.7		-0-		-0-			-0-
R & D Properties		376.3		-0-		-0-			-0-
Other Properties		9,081.9		4.7		0.05	%		0.18	%
TOTALS		$ 102,520.4		$ 83.2		0.08	%		0.06	%

Less than 0.01%

The September 30, 2008 survey included $102.5 billion of California commercial mortgage loans being serviced by 17 mortgage banking firms.

Founded over 50 years ago, the California Mortgage Bankers Association continues to be 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