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| Real Estate Lending Trends and Opportunities |
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| Written by Matthew J. Anderson, Foresight Analytics LLC |
| Monday, 20 April 2009 19:00 |
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Commercial Bank Loan Flows Our preliminary read on 1Q 2009 lending by banks indicates that commercial mortgage credit has continued to grow, but by an ever decreasing rate. Whereas banks had been providing $30 to $40 billion in net new commercial mortgage credit per quarter a year ago, that fell to about $20 billion per quarter in the second half of 2008, and fell further to only a little above $10 billion in the first quarter.Mortgage DelinquenciesThe retreat from lending to real estate – including commercial real estate – has been driven by worsening loan performance. The hardest-hit areas have been single family mortgages (compare the 8% to 9% recent delinquency rates to previous highs of 3% to 4% in the early 1990s) and construction (not yet at the 15% to 20% delinquency rates reached in the early 1990s). But commercial mortgage delinquencies (for both apartments and non-residential) have been rising at an accelerated pace in the last 2 quarters, and that is fueling additional reticence from lenders.Commercial Mortgage FlowsPlease register or log in to read the rest of this article! |
| Last Updated ( Tuesday, 02 June 2009 14:06 ) |
