According to new data from Real Capital Analytics, the
default rate for commercial real estate loans owned by the
nation’s FDIC-insured banks increased from 3.83 percent in
the fourth quarter of 2009 to 4.17 percent in the first
quarter of 2010.
Real Capital says this is the highest default rate reported
since 1992, the first year for which data is available, when
it was 4.55 percent. Year-over-year, the default rate is up
by 192 basis points. By contrast, at its cyclical low in the
first half of 2006, the commercial mortgage default rate was
0.58 percent.
As of the first quarter of this year, $45.5 billion of
bank-held commercial mortgages were in default, according to
Real Capital’s tally.
The research firm segregates multifamily apartment loans
from the broader category of commercial mortgages, which
includes hotel, office, retail, and industrial. In the first
quarter of this year, the default rate on multifamily
mortgages held by banks hit 4.62 percent, up from 4.41
percent the previous quarter, and the highest level on
record going back to 1992. In total, $9.9 billion of
bank-held multifamily mortgages were in default last
quarter.
A separate study released this week by Trepp LLC shows that
the share of past due loans held by investors in commercial
mortgage-backed securities (CMBS), including those already
in foreclosure and REO, jumped 40 basis points in May to
8.42 percent – the highest in the history of the CMBS
industry.
For seven of the last eight months, the rate of increase in
CMBS delinquencies has been between 37 and 49 basis points
in Trepp’s study. The only exception was February of this
year when the delinquency rate nudged up only 22 basis
points.
To put the delinquent CMBS universe into perspective, Trepp
says that just six months ago, the delinquency rate was 5.65
percent. One year ago, it was 2.77 percent.
The risk assessment and analytics firm notes that results
were mixed across the varying property types. In May, the
industrial sector was the only one to post a decline in CMBS
delinquencies, dropping from 3.44 percent in April to 3.34
percent. Hotel delinquencies claimed the biggest jump, up
129 basis points to top out above 18 percent.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Sunday, June 6, 2010
Tuesday, May 25, 2010
Mortgage delinquencies surge to a record
The number of homeowners either in default or at risk of foreclosure will have a broader effect on the overall economic recovery. More than 10% of homeowners have missed at least one payment during the January-March timeframe. That double-digit number represents a new high, up from 9.1% a year ago. The biggest factor in that high number is the amount of borrowers who missed three months of payments. In total, 4.3 million Americans are at risk of losing their homes. One encouraging figure is the number of homeowners just starting to show trouble is decreasing, down .3%. Many agree that the government's $75 billion foreclosure prevention program barely made a dent in the overall problem. The scariest part of all this? Homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures - accounting for nearly 37% of all new foreclosures,up from 29 percent a year ago.
Economic woes, such as unemployment or reduced income, are the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. But homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures. earlier.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Economic woes, such as unemployment or reduced income, are the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. But homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures. earlier.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, May 24, 2010
Commercial Property Values Turn Negative
Commercial Property Values Turn Negative Again
By: Carrie Bay
4/23/2010
Commercial real estate prices appeared to be stabilizing
toward the end of last year, but a new study shows price
declines have returned. Moody’s Investors Service reported
this week that its index for commercial property values fell
2.6 percent in February. It was the first decline recorded
by the company in four months.
The drop pushes the Moody’s/REAL Commercial Property Price
Indices (CPPI) 42 percent below their October 2007 peak. The
ratings agency says commercial real estate values are down
26 percent compared to just a year ago.
“From November to January, commercial real estate prices
increased by an aggregate 6.3 percent,” said Nick Levidy,
managing director at Moody’s. “As noted in our previous
reports, however, we did not feel that these increases were
sustainable in the short term, particularly given current
low transaction volumes. With continued low volume in
February and a larger proportion of repeat-sales sales
considered distressed, it is unsurprising that prices have
once again headed lower.”
According to Moody’s report, while interest in high-quality
properties appears to be picking up, transaction activity in
the core of the commercial real estate market remains
muted.
Overall, transaction volume declined from January to
February by 10 percent as measured by dollars, and by nearly
30 percent in the number of deals. The CPPI calculation
included 66 repeat sales totaling roughly $540 million.
The share of distressed sales in Moody’s repeat-sales
database has increased significantly over the last couple of
years. In 2008, just 4 percent of resales were identified as
distressed. That figure jumped to nearly 20 percent in early
2009, and in February of this year, constituted nearly
one-third at 32 percent.
Moody’s says the stark high-low split in the market when it
comes to property quality, together with the effect of
distressed sales on overall price levels, will likely cause
markets to bounce up and down over the near term.
“We do not expect prices to establish a clear trend until
volume picks up and market-clearing prices are established
for distressed properties,” the ratings agency said.
By: Carrie Bay
4/23/2010
Commercial real estate prices appeared to be stabilizing
toward the end of last year, but a new study shows price
declines have returned. Moody’s Investors Service reported
this week that its index for commercial property values fell
2.6 percent in February. It was the first decline recorded
by the company in four months.
The drop pushes the Moody’s/REAL Commercial Property Price
Indices (CPPI) 42 percent below their October 2007 peak. The
ratings agency says commercial real estate values are down
26 percent compared to just a year ago.
“From November to January, commercial real estate prices
increased by an aggregate 6.3 percent,” said Nick Levidy,
managing director at Moody’s. “As noted in our previous
reports, however, we did not feel that these increases were
sustainable in the short term, particularly given current
low transaction volumes. With continued low volume in
February and a larger proportion of repeat-sales sales
considered distressed, it is unsurprising that prices have
once again headed lower.”
According to Moody’s report, while interest in high-quality
properties appears to be picking up, transaction activity in
the core of the commercial real estate market remains
muted.
Overall, transaction volume declined from January to
February by 10 percent as measured by dollars, and by nearly
30 percent in the number of deals. The CPPI calculation
included 66 repeat sales totaling roughly $540 million.
The share of distressed sales in Moody’s repeat-sales
database has increased significantly over the last couple of
years. In 2008, just 4 percent of resales were identified as
distressed. That figure jumped to nearly 20 percent in early
2009, and in February of this year, constituted nearly
one-third at 32 percent.
Moody’s says the stark high-low split in the market when it
comes to property quality, together with the effect of
distressed sales on overall price levels, will likely cause
markets to bounce up and down over the near term.
“We do not expect prices to establish a clear trend until
volume picks up and market-clearing prices are established
for distressed properties,” the ratings agency said.
Saturday, May 22, 2010
Mortgages in Foreclosure Hit New High in Q1
Mortgages in Foreclosure Hit New High in Q1: MBA
05/19/2010 By: Carrie Bay
The percentage of home loans making their way through the foreclosure process jumped to a new record high during the first quarter of 2010, the Mortgage Bankers Association (MBA) reported Wednesday.
Despite the industry’s, and the government’s, all-out attack on the nation’s foreclosure problem, MBA’s regular quarterly study showed that 4.63 percent of outstanding mortgages were in foreclosure at the end of March. The first quarter foreclosure rate rose from 4.58 percent at the end of 2009. The foreclosure inventory rate this time last year was 3.85 percent.
MBA’s delinquency calculations also demonstrate a continuing upward trend. The percentage of homeowners with a mortgage who were behind on their payments but
not yet in foreclosure last quarter jumped to 10.06 percent on a seasonally adjusted basis. The national delinquency rate was 9.47 percent at the close of 2009 and 9.12 percent at the end of the first quarter of last year.
According to MBA, the latest quarterly upsurge in past due loans was the result of increases in delinquencies for prime, subprime, and Veteran Affairs (VA) loans.
The trade group’s data show that 3.27 percent of outstanding mortgages were 30 days overdue in Q1, 3.39 percent were at least 90 days past due, and lenders initiated new foreclosure actions on 1.37 percent.
Together, loans that have gone unpaid for 90 days and those in foreclosure – the ones classified as seriously delinquent – account for 68 percent of all non current mortgages in MBA’s study.
Jay Brinkmann, MBA’s chief economist, said, “Overall, we see a continuation of the pattern of declines in short-term delinquency rates, the continued historically high share of delinquencies that are 90 days or more past due, and a leveling off in the pace of foreclosures.”
Brinkmann candidly summed up his organization’s many pages of statistical findings with, “If mortgage delinquencies are not yet clearly improving, it also appears they are not getting worse. However, a bad situation that is not getting worse is still bad.”
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
05/19/2010 By: Carrie Bay
The percentage of home loans making their way through the foreclosure process jumped to a new record high during the first quarter of 2010, the Mortgage Bankers Association (MBA) reported Wednesday.
Despite the industry’s, and the government’s, all-out attack on the nation’s foreclosure problem, MBA’s regular quarterly study showed that 4.63 percent of outstanding mortgages were in foreclosure at the end of March. The first quarter foreclosure rate rose from 4.58 percent at the end of 2009. The foreclosure inventory rate this time last year was 3.85 percent.
MBA’s delinquency calculations also demonstrate a continuing upward trend. The percentage of homeowners with a mortgage who were behind on their payments but
not yet in foreclosure last quarter jumped to 10.06 percent on a seasonally adjusted basis. The national delinquency rate was 9.47 percent at the close of 2009 and 9.12 percent at the end of the first quarter of last year.
According to MBA, the latest quarterly upsurge in past due loans was the result of increases in delinquencies for prime, subprime, and Veteran Affairs (VA) loans.
The trade group’s data show that 3.27 percent of outstanding mortgages were 30 days overdue in Q1, 3.39 percent were at least 90 days past due, and lenders initiated new foreclosure actions on 1.37 percent.
Together, loans that have gone unpaid for 90 days and those in foreclosure – the ones classified as seriously delinquent – account for 68 percent of all non current mortgages in MBA’s study.
Jay Brinkmann, MBA’s chief economist, said, “Overall, we see a continuation of the pattern of declines in short-term delinquency rates, the continued historically high share of delinquencies that are 90 days or more past due, and a leveling off in the pace of foreclosures.”
Brinkmann candidly summed up his organization’s many pages of statistical findings with, “If mortgage delinquencies are not yet clearly improving, it also appears they are not getting worse. However, a bad situation that is not getting worse is still bad.”
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Saturday, May 15, 2010
Freddie Mac Looking for Money
NEW YORK, May 14 (Reuters) - Freddie Mac (FRE.N) said Friday it plans to sell $2.5 billion of reference bills on Monday.
The scheduled offerings are:
-- $500 million of one-month bills due June 14, 2010 to be sold Monday and settle Tuesday; and
-- $1.0 billion of three-month bills due Aug. 16, 2010 to be sold Monday and settle Tuesday; and
-- $1.0 billion of six-month bills due Nov. 15, 2010 to be sold Monday and settle Tuesday.
The bills will be sold over the Internet in a Dutch auction. In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.
Bids will be accepted from authorized dealers from 8:00 a.m. until 9:45 a.m. (Reporting by Caryn Trokie, Editing by Chizu Nomiyama)
What does mean to Joe Q. Public?
It Means foreclosure mess will be around a while, they need money to fund the others that are coming in...
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The scheduled offerings are:
-- $500 million of one-month bills due June 14, 2010 to be sold Monday and settle Tuesday; and
-- $1.0 billion of three-month bills due Aug. 16, 2010 to be sold Monday and settle Tuesday; and
-- $1.0 billion of six-month bills due Nov. 15, 2010 to be sold Monday and settle Tuesday.
The bills will be sold over the Internet in a Dutch auction. In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.
Bids will be accepted from authorized dealers from 8:00 a.m. until 9:45 a.m. (Reporting by Caryn Trokie, Editing by Chizu Nomiyama)
What does mean to Joe Q. Public?
It Means foreclosure mess will be around a while, they need money to fund the others that are coming in...
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, May 12, 2010
Foreclosure Answers for the Troubled Homeowner
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Taxpayers asked to put more $$$ in Freddie and Fannie
Fannie Mae & Freddie Mac submitted a request for an additional $8.4 billion from Treasury to eliminate our net worth deficit as of March 31, 2010. The aggregate liquidation preference of the senior preferred stock was $76.2 billion as of March 31, 2010 and will increase to $84.6 billion as a result of FHFA’s request on our behalf for funds to eliminate our net worth deficit as of March 31, 2010.
- Serious delinquency rate 5.47% v 3.15% year/year, v 5.38% quarter/quarter
- carrying value of foreclosed properties: $11.4B v $6.2B year/year, v $8.5B quarter/quarter
- Total home retention loan workouts: 105K v 50K quarter/quarter
Mortgage Delinquency Rate 90+ Days
Jefferson and Surrounding Counties
Jefferson up 3.9%
Spencer up 4.9%
Bullitt up 3.8%
Nelson up 4.2%
Oldham up 3.8%
In Indiana Counties across the river:
Clark up 3.8%
Washington up 5.8%
Floyd up 3.0%
Harrison up 3.6%
There has been an increase in loan workouts up 47% quarter to quarter from 50K to 105K. Banks have softened a little but not much.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
- Serious delinquency rate 5.47% v 3.15% year/year, v 5.38% quarter/quarter
- carrying value of foreclosed properties: $11.4B v $6.2B year/year, v $8.5B quarter/quarter
- Total home retention loan workouts: 105K v 50K quarter/quarter
Mortgage Delinquency Rate 90+ Days
Jefferson and Surrounding Counties
Jefferson up 3.9%
Spencer up 4.9%
Bullitt up 3.8%
Nelson up 4.2%
Oldham up 3.8%
In Indiana Counties across the river:
Clark up 3.8%
Washington up 5.8%
Floyd up 3.0%
Harrison up 3.6%
There has been an increase in loan workouts up 47% quarter to quarter from 50K to 105K. Banks have softened a little but not much.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
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