The delinquency rates for residential and commercial mortgages at Federal Deposit Insurance Corp. (FDIC)-insured banks improved modestly during the first quarter, while construction-loan performance worsened, according to estimates from Trepp LLC. Trepp released its estimates in advance of the FDIC's release of final first-quarter figures.
According to the company's statistics, the residential mortgage delinquency rate decreased for FDIC-insured institutions from 12.8% in the fourth quarter of 2010 to 12.7% in the first quarter of this year. During the same time period, the commercial mortgage delinquency rate dropped from 5.4% to 5.3%, while the construction-loan delinquency rate grew from 18% to 18.3%, according to Trepp's estimates.
Trepp based its estimates on banks' earnings reports and call report filings. Matt Anderson, the company's managing director, says first-quarter data shows that the recovery in delinquency rates that began in the second quarter of last year ‘appears to have stalled.’
"This underscores the fact that markets have not yet truly recovered and also reflects anemic growth for both residential and commercial real estate,’ Anderson says.
