Commercial Briefs

MBA (5/13/2008 ) Murray, Michael
CMBA Delinquency Survey Near Six-Year Low
A $4.3 million loan for retail property in Westminster, Calif., a $4 million loan for hospitality property in Patterson, Calif. and a $4.8 million loan on a healthcare facility accounted for three of the four delinquent loans from the first quarter California Commercial Loan Delinquency Survey, conducted by the California Mortgage Bankers Association. The survey showed four loans more than 30 days delinquent—totaling $14.6 million—from a combined loan servicing portfolio of $90.9 billion.

The loan delinquency ratio was 0.02 percent, lowest since June 30, 2002 when it was 0.01 percent, CMBA reported. By number, the four delinquent loans represented 0.04 percent of the 10,573 commercial real estate loans in the survey. Three months ago, the California commercial loan delinquency ratio was 0.05 percent and one year ago, it was 0.13 percent. Two of the 17 commercial mortgage banking firms that participate in the survey reported loans more than 30 days delinquent. A $1.5 million loan on an apartment building in Sacramento was two payments past due, and the other three loans were three or more payments past due.

CMBA considers a loan delinquent if it is two or more payments past due, and includes loans in the process of foreclosure regardless of the number of payments past due.

Small Balance Originations Continue Drop in 4Q
Small balance originations dropped to $29.9 billion in the fourth quarter last year, down 5.2 percent from the previous quarter, based on a National Mortgage Market report of small-balance commercial mortgages conducted by Boxwood Means Inc., Stamford, Conn. As originations continued to fall, year-over year volume declined by 18.3 percent while total 2007 loan production clocked in at $134.4 billion. Refinance activity increased to 66 percent of total originations in the fourth quarter, up from 61 percent in the third quarter and 55 percent during the fourth quarter of 2006.

The firm reported small-cap office rents increased 4.5 percent on average in the first quarter this year from 12 months ago, followed by industrial with a 1.7 percent increase in rents. Small-cap rents in retail were basically flat, with a -0.03 percent year-over-year decline.

Cohen Financial on S&P’s Select Servicer List
Cohen Financial, Chicago, was added to Standard & Poor’s Rating Agency’s (S&P) Select Servicer list for commercial mortgage servicers. Cohen Financial provides its loan administration (LADM) platform to portfolio lenders, including insurance companies, banks, high-yield funds and institutional commercial real estate investors and commercial mortgage-backed securities issuers and conduits. Cohen Financial’s portfolio consists of more than 800 loans with combined principal balances of more than $5 billion in the United States and Canada.

Green Park, Q10|Bonneville Enter Correspondent Agreement
Green Park Financial, Bethesda, Md., entered into a correspondent agreement with Q10|Bonneville Mortgage Co., Salt Lake City. As a Green Park Financial correspondent, Q10|Bonneville could originate loans for Fannie Mae’s Delegated Underwriting and Servicing (DUS) program.