Loan delinquencies rise in third quarter, according to early estimates

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The pace of delinquencies on commercial mortgages continues to rise at an accelerated pace, expanding 60 basis points to 4.7 percent in the third quarter, Applied Analytics has estimated. The number is double what it was a year ago, but below the third-quarter 2001 rate of 8 percent. Delinquent commercial and industrial loans rose 50 basis points to 4.2 percent, while in residential mortgages, the rate was 11 percent, up 80 basis points from a year earlier. Delinquent loans shot up by 190 basis points to 18.2 percent for construction lending. The firm used earnings reports and call report filings to come up with an early forecast, though official third-quarter numbers will be released late next month.

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