More failed construction loans foreseen for banks

* Delinquency rates triple what they were at peak of boom

* Commercial mortgages a growing factor in bank failures

NEW YORK, Sept 1 (Reuters) - Delinquency rates on loans for construction and land in the second quarter were three times what they were at the peak of the real estate boom in late 2007, and the picture is expected to worsen for the chief lenders, banks and thrifts, according to a new report.

Problem construction loans, mainly for residential and condo construction, have been the chief reason for the failure of some 111 banks the Federal Deposit Insurance Corp has closed since September 2007, said Mark Anderson, partner in Foresight Analytics LLC, the real estate consulting services company that issued the report on Tuesday.

But commercial mortgages are a growing factor in bank failures, he said.

"We're bumping along the bottom for residential (construction), but I think we're still fairly early on in the real estate cycle," Anderson said.

California-based Foresight Analytics has 466 banks on its watch list of those in danger of going under.

Delinquency rates on loans for construction and land rose to 16.3 percent in the second quarter, up from 14.5 percent the previous quarter, the report said. In the last quarter of the peak year of 2007, the delinquency rate was 5 percent.

Single-family housing and condo construction easily were the weakest sectors with delinquency rates rising to 24.2 percent and 38 percent, respectively, from rates in the first quarter of 21.9 percent and 32.1 percent.

Foresight Analytics said it expects those rates to rise in the second half of the year, as home prices remained weak in the second quarter despite indications residential prices may be bottoming.

The delinquency rate for apartment construction hit 9.1 percent in the second quarter, up from 6.8 percent in the first quarter. The delinquency rate for nonresidential commercial construction loans rose to 10.4 percent, up from 8.8 percent. (Reporting by Ilaina Jonas; Editing by Gary Hill)