Firms, known as special servicers, are dealing with souring loans backed by commercial-mortgage-backed securities, or CMBS: a total of $90.9 billion through the end of September, compared with $73.8 billion at the end of last year, according to credit-rating firm Fitch Ratings. But the pace at which those loans have been resolved has picked up at an even faster rate, with $27.9 billion recovered by special servicers from bad loans in the third quarter, compared with $8.9 billion in the first quarter, according to Fitch. Read more…
commercial mortgages
By Year End — Half Commercial Mortgages Underwater
That’s what Elizabeth Warren, chair of the TARP Congressional Oversight Panel said last Monday. ‘œThese loans are concentrated in the mid-sized banks,’ Warren told CNBC. ‘œWe now have 2,988 banks’”mostly midsized, that have dangerous concentrations in commercial real estate lending. As a result, the economy will face another very serious problem — to be resolved over the next three years… [and] things are unlikely to return to normalcy in 2010.”
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Lower Delinquency in Commercial Loans
The Mortgage Bankers Association reports that commercial mortgages were among the best-performing loans and leases held by banks and thrifts in the last three months of 2009.
Commercial and industrial loans had delinquency rates of 4.39 percent, followed by commercial mortgages at 5.06 percent.
Construction loans posted the highest delinquency rate at 18.56 percent, followed by single-family mortgages at 12.49 percent.
Source: Associated Press (03/09/10)
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