The delinquency rate for commercial loans in California during the fourth quarter of 2012 decreased to 0.21%, falling from the previous quarter's rate of 0.35%, according to new data from the California Mortgage Bankers Association (CMBA).
The CMBA reports that only 16 loans, totaling $88.9 million, were two or more payments past due during the last quarter. Of the 16 delinquent loans, the five largest are all land loans, ranging from $4.5 million to $21.3 million.
Furthermore, 10 of the 14 mortgage banking firms included no reported delinquencies; the CMBA data includes $46.1 billion of commercial/multifamily loans, most of which are not securitized.
‘Investors throughout the country should take note of the rock-solid performance of California commercial real estate,’ says Peter Ulrich, CMBA's commercial real estate consultant. ‘Commercial real estate remains an excellent investment going forward.’
