Commercial-loan delinquencies in California fell to a rate of 0.05 percent in the fourth quarter, down from 0.4 percent during the same period a year ago, a survey by the California Mortgage Bankers Association revealed.
The delinquency rate, which measures home loans that are 30 days or more behind, was the fourth-lowest reported since the second quarter of 2002, but up slightly from the 0.04 percent clip in the third quarter of 2007.
According to the CMBA’s Quarterly Commercial Loan Delinquency Survey, fifteen of the sixteen participating commercial banking firms reported no loans more than 30 days delinquent.
Of the $83.9 billion in commercial loans studied, just four loans totaling $38.7 million were more than three months behind out of 9,932 surveyed, the CMBA said.
They included a $27.3 million loan tied to an office building in San Francisco, a $4.8 million loan attached to a health care facility in San Diego County, a $4 million hotel loan in Alameda County, and a $2.6 million office building loan in Orange County.
Despite recent worries that commercial lending would mimic recent woes seen with residential mortgage lending, things look fairly tidy, likely because loose lending practices weren’t prevalent among commercial mortgage lenders.