Here Come the Defaults

The first waves are hitting the beach as Cyclone CMBS picks up speed.  Bloomberg reported today that “the (Bank) default rate for commercial real estate mortgages more than doubled in the second quarter compared with the same period last year. The proportion of loans more than 90 days past due soared from 1.18% in the second quarter of 2008 to 2.88% of the unpaid balances at the end of the second quarter of 2009, research firm Real Estate Econometrics said. Sam Chandan, the company’s president and chief economist, predicted the default rate will reach 4.1% by the end of this year.

But the storm also creates opportunities — and since my spin in this blog is on the plus side, I am going to let you in on a few secrets in the weeks ahead.

About Timothy E Thomas

Senior business development officer, CENNTENNIAL LENDING, metro Denver. Responsible for SBA 504 production and conventional small balance commercial lending. Centennial is a credit union service organization owned by 13 credit unions in Colorado and Wyoming. Former SBA-USDA desk manager and Registered Representative for Isaak Bond Investments, Inc., a municipal broker dealer and market maker in SBA and USDA guaranteed loans and pools; taxable and tax exempt municipal bonds and agency securities serving institutional investors for over 33 years, member SIPC, FINRA.
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