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News reports this past week reported that for the first time ever delinquencies on CMBS loans originated prior to the 2008 market crash now sit at 10.4%, but new loan originations are growing.
Notable factoids relating to commercial/multifamily real estate finance released this week:
• $59.1 billion in CMBS loans are delinquent.
• $79.2 billion in CMBS loans are in special servicing (meaning enforcement and foreclosure proceedings are or maybe commenced).
• Industry analysts expect continue growth in CMBS delinquencies before leveling off.
• 2012 first quarter commercial/multifamily loan originations exceeded 2011 last quarter loan originations.
• Life insurance company and GSE (Fannie Mae and Freddie Mac) lending is up, and CMBS and bank lending is down. Other commercial real estate finance players (pension funds, mortgage REITS, private investors and credit companies) are up.
• More money than new loans in the marketplace.
GERSON LAW FIRM APC specializes in loan originations and loan asset recovery strategies for financial institutions and other providers of commercial credit, including CMBS, GSE, life insurance company, banks, credit unions and private investors.