Loan defaults reach record high

Defaults on apartment building mortgages held by U.S. banks hit a record 4.6 percent in the first quarter, almost twice the level of last year, as more borrowers failed to repay debt approved near the market peak, according to real estate research firm Real Capital Analytics. Defaults on multi-family mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009. Also on the rise, in the first quarter, were commercial mortgage defaults for loans against office, retail, hotel and industrial properties. The level of distress among bank-held multi-family mortgages is significantly higher than those held by Fannie Mae and Freddie Mac, according to the report. Multi-family mortgages held by the federal organizations saw a 60-day delinquency rate of .24 percent, Real Capital Analytics data show. TRD