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Category: Current Grade: A Total Views: 298 Member Comments: 1 |
Posted on: 02/03/2010 Posted by: apmoell Blog Points: 17 View all blogs >> |
Attention: Commercial Real Estate and Mortgage Professionals!
The commercial loan modification business is growing every day and millions of businesses need your help.
U.S. commercial property bank loan defaults soar
"Depository institutions hold about half the $3.2 trillion in debt on U.S. commercial property, with the commercial mortgage-backed securities market accounting for about 25 percent of that. Insurance companies and government-sponsored entities such as Fannie Mae account for the remainder."
Analysis: $2.4 trillion held by Depository Institutions.
"Real Estate Econometrics also revised its default projections higher. It sees the default rate rising to 4.1 percent by the end of the year, up from its prior forecast of 3.9 percent. By the end of 2010, the default rate is expected to rise to 5.2 percent, up from the prior outlook of 4.7 percent. It expects the default rate for U.S. commercial loans held by banks to peak at 5.3 percent in 2011, up from its forecast of 4.8 percent."
Analysis: $2.4 trillion multiplied by .052 (5.2%) equals $127.2 billion in defaults by the end of 2010.
Bottom line: Every day real estate and finance professionals are discovering that the current commercial real estate market represents one of the greatest opportunities in history.
Anthony Moell. PHR
Commercial Relief
The commercial loan modification business is growing every day and millions of businesses need your help.
U.S. commercial property bank loan defaults soar
"Depository institutions hold about half the $3.2 trillion in debt on U.S. commercial property, with the commercial mortgage-backed securities market accounting for about 25 percent of that. Insurance companies and government-sponsored entities such as Fannie Mae account for the remainder."
Analysis: $2.4 trillion held by Depository Institutions.
"Real Estate Econometrics also revised its default projections higher. It sees the default rate rising to 4.1 percent by the end of the year, up from its prior forecast of 3.9 percent. By the end of 2010, the default rate is expected to rise to 5.2 percent, up from the prior outlook of 4.7 percent. It expects the default rate for U.S. commercial loans held by banks to peak at 5.3 percent in 2011, up from its forecast of 4.8 percent."
Analysis: $2.4 trillion multiplied by .052 (5.2%) equals $127.2 billion in defaults by the end of 2010.
Bottom line: Every day real estate and finance professionals are discovering that the current commercial real estate market represents one of the greatest opportunities in history.
Anthony Moell. PHR
Commercial Relief
(530) 605-0563


Hi Anthony,
Thanks for sharing a very good blog.
John