Q1 2012 BANK CRE DEFAULT AND LENDING REPORT

JUNE 1 2012
SELECTED FINDINGS FROM THE Q1 2012 BANK CRE DEFAULT AND LENDING REPORT
AND QUARTERLY BANK LEAGUE TABLES


STRONG FUNDAMENTALS, LOW-COST FINANCING PUSH APARTMENT DEFAULT RATES LOWER

May 31 | REIT.COM (NAREIT)

Banks' Commercial Real Estate Loan Default Rates Continue to Decline | by Carisa Chappell

NAREIT writes: The bank default rate among commercial real estate loans in the first quarter of 2012 fell to its lowest level in nearly three years, according to an analysis released May 30 ... “The overall decline in the default rate reflects a relatively larger improvement in legacy apartment loan performance,” said Sam Chandan, president and chief economist with Chandan Economics.

Q1 2012 Bank CRE Debt and Lending Report

The default rate across commercial real estate and apartment (multifamily) loans held by banks fell to 3.45 percent in Q1 2012, the lowest level since Q2 2009. The overall decline in the default rate reflects a relatively larger improvement in legacy apartment loan performance. The apartment default rate fell to 2.36 percent in Q1 2012, down 131 basis points from a year earlier, to its lowest level since Q4 2008. The quarterly net charge-off rate for apartment loans fell to its lowest level since Q3 2008.

May 30 | Fox Business

Chandan: Potential Homeowners Still Opting to Rent Rather Than Buy | Interview with Connell McShane

Sam Chandan discusses the latest drop in Treasury yields, the impact on mortgage financing rates, and updates on housing and apartment trends, including findings from Axiometrics that show a 7.7 percent annualized rate of increase in national year-to-date apartment rent.

May 22 | CNBC Squawk Box

Outlook for the US Economy, Housing Markets, and Jobs | Interview with Martin Soong

In this interview with CNBC's Martin Soong, Sam Chandan argues that employment trends should improve after two months of disappointing job gains. But spillovers into the housing market will be tempered by constrained access to mortgages.

May 22 | Fox Business

Is the Housing Recovery in Sight? Interview with Fox Business Anchor Cheryl Casone

Sam Chandan offers a guarded assessment of the latest housing data, pointing to recent weakness in the job market as one reason that gains in home sales will be measured.

Watch the video here or at the Fox Business website: foxbusiness.com