by Calculated Risk on 7/28/2007 02:31:00 AM

From the WSJ: Hints of Broader Problems Arise in Real-Estate Loans

Delinquencies on loans that back commercial mortgage-backed securities rose for the first time since 2003 in the second quarter, potentially a sign that real-estate problems are broadening to the commercial sector.

CMBS delinquencies rose 13% in the second quarter to $1.65 billion from $1.46 billion in the first quarter, according to a new report by Standard & Poor's, which attributes the rise to overaggressive loans made in 2006, as well as increased problems in the retail sector.

The AHM story will get the buzz (previous post), but this actually might be more important for the overall economy.