Delinquency rates on commercial real estate mortgages improved across the board in 2011, but this segment is likely to remain challenged by loan write-offs and a contraction in liquidity, Trepp analytics said Thursday.
Trepp said banks saw significant improvements in CRE loan delinquencies this past year, but predicts delinquency rates will stay at distressed levels and charge-offs will strike again in 2012, draining loss reserves at banks and limiting liquidity.
The multifamily mortgage segment is performing the best with the sector's delinquency rate falling to 3.6%. Trepp said this sector, more than any other, is benefiting from favorable rent and occupancy rates as well as strong investor demand.
Read more...Commercial real estate loans improve in 2011, but face headwinds « HousingWire
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