The delinquency rates for banks' residential mortgage and commercial real estate loans appear to have eased in the second quarter, Trepp LLC reports. In advance of the final second-quarter figures from the Federal Deposit Insurance Corp. (FDIC), a new study from Trepp suggests the residential mortgage delinquency rate dropped quarter over quarter from 12.8% to 12.6%.
During the same time frame, the delinquency rate for construction loans dropped from 18.2% to 17.1%, the rate for commercial mortgages fell from 5.4% to 5%, and the rate for commercial and industrial loans dropped from 2.6% to 2.3%.
"Our detailed research through earnings reports and call report filings from smaller banks indicates that the recovery that began in mid-2010 has resumed, after stalling in the first quarter," says Matt Anderson, a managing director at Trepp. "These results suggest that banks have stepped up efforts to shed problem commercial real estate loans."
