In recent discussions with various commercial real estate lenders I have been assured that the residential mortgage meltdown is not having a residual impact on the commercial side. This anecdotal evidence has been confirmed by a survey just released by the California Mortgage Bankers Association.
"California Commercial Loan Delinquency Ratio hits 5-Year Low at .03%. Only 3 loans delinquent out of over 10,000 surveyed."*
Furthermore, none of these delinquent loans are multifamily.
Of the $88 billion of total servicing by the 17 mortgage banking firms participating, $27 billion is multifamily...multifamily represents the segment with the highest volume (31%) of any commercial property type in the state of CA.
That's not to say that delinquent residential mortgages won't have an impact on our industry but I think it is a strong indicator of sound industry fundamentals.
* June 30, 2007 quarterly commercial loan delinquency survey (CMBA).
1 comment:
Advantage of Multi Family purchasing real estate, as opposed to all income-producing properties that it offers investors real estate, and the ability to support the debt to income producing assets.
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