This is serious: “Delinquency on CMBS hits record high in Q3″
By Daniel at 8 December, 2009, 12:21 pm
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“The Mortgage Bankers Association said the percentage of commercial mortgage-backed securities loans that were 30 days or more past due hit 4.06% in the third quarter, up from 1.17% in the same period last year. It is the highest rate recorded since the group began tracking the data more than a decade ago. “When there’s such a significant pullback in employment, that has an impact on commercial office space,” said Jamie Woodwell, vice president of commercial real estate research for the association. “When there’s a pullback in consumer spending, that has an impact on retail.
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The delinquency rate will not improve until the unemployment rate drops and consumer spending revives, Woodwell said in a phone interview. The MBA does not issue forecasts on when the turnaround might occur, Woodwell said.
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Of a total $3.47 trillion in commercial and multifamily mortgage debt outstanding as of June 30, 50 percent was held by banks, 21 percent pooled in CMBS, 10 percent owned or guaranteed by government-backed enterprises, 9 percent held by life insurance companies and the rest by other government and private entities, the Mortgage Bankers Association reported. ”
Bloomberg (12/7)
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