The rate of commercial mortgage delinquencies ballooned more than 25% in the first quarter of 2010.
New numbers from the Mortgage Bankers Association reveal the commercial real estate problem has not gone away… it’s just being swept under the rug. Still, this is hard to ignore: 5.7% of loans contained in commercial mortgage-backed securities were at least 30 days in arrears during Q4 2009. And the number exploded to over 7.2% in Q1 2010. That’s the blue line in this chart…
Yes, a year earlier, the figure was still under 2%. And that red line? Those are loans more than 90 days overdue that sit in the portfolios of banks and thrifts. After 90 days, you might as well consider it defaulted. And that rate has doubled in the space of a year.
"Economic growth, specifically in areas of jobs and consumer spending, will be key to stabilizing the commercial property and mortgage markets going forward,” reads a statement from the Mortgage Bankers Association that accompanied this data.
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