Wall Street Journal (07/23/08) P. C12; Simon, Ruth; Wei, Lingling; Corkery, Michael
Foresight Analytics LLC reports that bad construction loans continued to weigh down banks' balance sheets during this year's April-through-June period as residential development loans failed in increasingly larger numbers. The California-based firm estimates that construction-loan delinquencies among all property types topped 9 percent in the second quarter, an increase from 7.2 percent in the first three months of this year and 2.4 percent in the same period a year ago. Among loans to single-family home builders, nearly 12 percent were at least 30 days past due versus just 3.1 percent in the second quarter of 2007. Foresight Analytics partner Matthew Anderson notes that the bad news is spreading to nonresidential projects, as the nation's weakening economy has put pressure on developers of such property types as shopping malls.
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