Over $ 1 Billion Delayed Senior Home Loans But Improving

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More than $ 1 billion in loans were disbursed from 15 different lenders in the first quarter of 2021, tied to senior housing communities overdue for more than 60 days. The total amount of foreclosures during this period was nearly $ 54 million.

But the rate of delinquent loans has dropped significantly from its peak in the third quarter of 2020, according to a new lending trend report released Thursday by the National Investment Center for Seniors and Seniors (NIC).

In addition, closed new permanent loans and construction loans remained relatively low this quarter and were at their lowest level since the industry group began registering activity in mid-2016. And the growth rates of the issuance of permanent and construction loans in the same store had a negative trend for four quarters in a row.

The 15 organizations contributing to the report included banks, commercial real estate firms and other lenders.

Total home loan delinquencies were $ 1.087 billion in the first quarter of 2021, down 50% from $ 2.2 billion in the third quarter of 2020 and 30.6% on a consistent basis since the second big wave swept across the country. positive cases of Covid-19. …

Credit growth for new store construction has been negative throughout the pandemic.

The total amount of loans from the participants in the report amounted to USD 57.4 billion; delinquencies amounted to 1.9%. First quarter foreclosures were $ 53.8 million, the first time the study recorded foreclosures since the first quarter of 2019.

It may reflect growing disaster during Covid-19 among smaller operators who were already experiencing difficulties with operations and financial performance before the start of the pandemic.

Overall, new lending in the first quarter of 2021 was weak, with closed loans totaling USD 1.2 billion. Lending for new construction, in particular, was impacted by projects delayed due to uncertainty surrounding the pandemic, with report participants reporting $ 153.1 million in new construction loans during the quarter.

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Participants reported $ 789.2 million in new permanent loans closed in the first quarter of 2021, down 45.6% from the previous quarter and the lowest recorded volume since the third quarter of 2016.

However, there are signs of optimism. The study authors cite anecdotal evidence of increased lender interest in nursing housing, which coincided with the rollout of the vaccine, which could be reflected in future quarters.

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