California Commercial Loan Delinquency Ratio Triples to 0.06%

Seven Loans Delinquent Out Of Over 10,000 Surveyed
SACRAMENTO, Calif.--(Business Wire)--
The second quarter of 2008 found that although California
commercial loan delinquency ratio tripled from the previous quarter,
the rate remains at a near-record low of 0.06%. The Quarterly
Commercial Loan Delinquency Survey conducted by the California
Mortgage Bankers Association (CMBA) found only seven loans were more
than 30 days delinquent, totaling $53.9 million of a combined total
loan servicing portfolio of $96.1 billion. This translates into a loan
delinquency ratio of 0.06%, triple the previous quarter's rate.
However, the ratio is still near the lowest since June 30, 2002 when
it was 0.01%. Three months ago the delinquency ratio was 0.06%; a year
ago it was 0.03%. Fifteen of the seventeen commercial mortgage banking
firms that participate in the survey reported no loans more than 30
days delinquent.

Six of the seven loans, totally $46.3 million, were 90 days past
due. The largest of these, $23.4 million, is on an apartment complex
in Corona; the next two largest loans an $8.1 million loan on an
office building in Los Angeles and a $6.2 million blanket loan on four
health care facilities in four different counties.

By number, the seven delinquent loans also represent .06% of the
10,794 commercial real estate loans included in the survey.

The following table compares delinquencies by type of property.

For survey purposes, a loan is considered delinquent if it is two
or more payments past due. Loans in the process of foreclosure are
included, regardless of the number of payments past due.

Seventeen income property mortgage bankers participated in the
CMBA survey. These companies originate and service loans on
apartments, retail, industrial and other commercial properties for
institutional investors such as life insurance companies and pension
funds.

For more information, please contact Peter H. Ulrich, CMB, CMBA
Commercial Real Estate Consultant at (626) 294-1058.

For media inquiries, or if you would like to receive CMBA's
quarterly commercial loan delinquency survey via e-mail, please
contact Dustin Hobbs, CMBA Communications director at (916) 446-7100,
or Dustin@CMBA.com.

-0-
*T
Delinquencies by Type of Property
---------------------------------------------------------------------

June 30, 2008

(Dollar figures in millions)

Total Amount % Delinquent % Delinquent
Servicing Delinquent As of As of
6/30/08 12/31/07
-------------------- ----------- ----------- ------------ ------------
Multi-family $ 34,188.8 $ 25.1 .07% (a)
-------------------- ----------- ----------- ------------ ------------
Office Buildings 22,011.7 11.1 .05% (a)
-------------------- ----------- ----------- ------------ ------------
Retail 16,119.0 7.6 .05% .03%
-------------------- ----------- ----------- ------------ ------------
Warehouse/Industrial 11,997.8 -0- -0- -0-
-------------------- ----------- ----------- ------------ ------------
Hospitality 5,190.0 -0- -0- .08%
-------------------- ----------- ----------- ------------ ------------
Mobile Home Parks 835.1 -0- -0- -0-
-------------------- ----------- ----------- ------------ ------------
R & D Properties 291.3 -0- -0- -0-
-------------------- ----------- ----------- ------------ ------------
Other Properties 5,485.9 10.1 0.18% 0.10%
-------------------- ----------- ----------- ------------ ------------

-------------------- ----------- ----------- ------------ ------------
TOTALS $ 96,119.6 $ 53.9 0.06% 0.02%
-------------------- ----------- ----------- ------------ ------------
*T

(a) Less than 0.1%

The June 30, 2008 survey included $96.1 billion of California
commercial mortgage loans being serviced by 17 mortgage banking firms.

Founded over 50 years ago, the California Mortgage Bankers
Association continues to be the premier advocate for the residential
and commercial real estate finance industry, representing its members
before all government and regulatory agencies. Headquartered in
Sacramento, California, CMBA promotes fair and ethical lending
practices through a wide range of educational programs, services, and
industry publications. CMBA provides to its members a competitive edge
by effectively aggregating political, economic, and marketing power.
Its membership of companies includes all elements of real estate
finance. For more information please visit www.cmba.com.

California Mortgage Bankers Association
Dustin Hobbs, Communications Director, 916-446-7100
Dustin@CMBA.com

Copyright Business Wire 2008