Loan defaults abating, report says

A national firm that tracks securitized loans is estimating that delinquencies likely will be down in four categories for the second quarter. Amid market jitters over the federal debt ceiling and an anemic jobs recovery, the news is a small bright spot.

Trepp, a New York-based commercial mortgage information services firm, is estimating delinquencies on construction loans and residential, commercial and industrial mortgages will decline in the second quarter. Defaults on construction loans are expected to show the sharpest decline for the quarter, dropping more than a percentage point to 17.1 percent. Commercial mortgage delinquencies are expected to fall nearly half a percent to 5 percent, residential mortgage defaults will fall slightly to 12.6 percent, and commercial/industrial loan defaults will drop to 2.3 percent.