The delinquency rate for commercial mortgages in California over the past three months has dropped from 0.26% to 0.23%, according to the California Mortgage Bankers Association's (CMBA) Quarterly Loan Delinquency Survey. One year ago, the delinquency rate was 0.08%.
The survey, which includes 16 mortgage banking firms and over $55 billion of commercial/multifamily loans, found 19 loans delinquent out of 6,453 surveyed. The CMBA's survey considers a loan to be delinquent if it is two or more payments past due. Loans in the process of foreclosure are also included.
As of three months ago, the largest of the 19 delinquent loans was a $33.1 million loan, now in foreclosure, on a retail property in Chula Vista. The next two largest delinquent loans are a $12.8 million loan on an office building in Contra Costa County and a $12.1 million loan on an office building in Ontario.
By number, the 14 delinquent loans represent 0.29% of the 6,453 loans included in the survey.
Peter Ulrich, the CMBA's commercial real estate consultant, notes that for the first time in the survey's history, three smaller loans were delinquent on R&D properties. Additionally, including this quarter's survey, no surveyed loans have ever been found delinquent on mobile-home properties.
Through September, multifamily delinquencies totaled $18.9 million, office-building delinquencies totaled $51.9 million, retail delinquencies totaled $38.3 million, warehouse and industrial delinquencies totaled $5.5 million and R&D delinquencies totaled $7.2 million.