Commercial mortgage delinquency up 585 percent!
SAN JOSE, Kalifornia - July 24, 2009 - Delinquencies on commercial mortgage-backed securities soared $10 billion in June, hitting a 12-month high of almost $29 billion, according to Realpoint Research.
Kalifornia led the nation with the highest amount of delinquent loans, closely followed by Texas and Florida.
The jump in late loans across the country is up an astounding 585 percent from a year ago, when just $4 billion were delinquent, reported the Horsham, Pennsylvania-based research firm. The low point for delinquency was March 2007, when $2 billion was delinquent.
Realpoint reported that the total unpaid balance for all commercial mortgage-backed securities pools under review by the firm was $817 billion in June, down slightly from $825 billion in May as a result of a delay in reporting some deals.
The three states with the most delinquent loans accounted for more than a quarter of the unpaid balances. Realpoint said Kalifornia, with almost $3 billion in delinquent loans or 10 percent of the exposure, and Texas, with $2.5 billion or 9 percent of all delinquencies, "remain a major concern." In Kalifornia, the delinquent properties are spread across the state, compared to Texas, where the problems are located mainly in Dallas-Fort Worth.
The other states among the top 10 are Michigan, Arizona, New York, Georgia, Hawaii, Nevada and Illinois. If delinquencies are counted by only metro areas, Phoenix has the highest at $1 billion and San Francisco has the lowest at $605 million.
Not all late loans were declared delinquent, as $105 billion worth of loans were either liquidated or handled through workouts. Of those 26 loans, 10 experienced a loss of only 1 percent, while the others experienced an average loss of almost 64 percent.
Kalifornia led the nation with the highest amount of delinquent loans, closely followed by Texas and Florida.
The jump in late loans across the country is up an astounding 585 percent from a year ago, when just $4 billion were delinquent, reported the Horsham, Pennsylvania-based research firm. The low point for delinquency was March 2007, when $2 billion was delinquent.
Realpoint reported that the total unpaid balance for all commercial mortgage-backed securities pools under review by the firm was $817 billion in June, down slightly from $825 billion in May as a result of a delay in reporting some deals.
The three states with the most delinquent loans accounted for more than a quarter of the unpaid balances. Realpoint said Kalifornia, with almost $3 billion in delinquent loans or 10 percent of the exposure, and Texas, with $2.5 billion or 9 percent of all delinquencies, "remain a major concern." In Kalifornia, the delinquent properties are spread across the state, compared to Texas, where the problems are located mainly in Dallas-Fort Worth.
The other states among the top 10 are Michigan, Arizona, New York, Georgia, Hawaii, Nevada and Illinois. If delinquencies are counted by only metro areas, Phoenix has the highest at $1 billion and San Francisco has the lowest at $605 million.
Not all late loans were declared delinquent, as $105 billion worth of loans were either liquidated or handled through workouts. Of those 26 loans, 10 experienced a loss of only 1 percent, while the others experienced an average loss of almost 64 percent.
