After peaking at 3.8% linked to the pandemic in Q3 2020, defaults as a percentage of total senior loans declined for the third quarter in a row and stood at 1.2% in Q2 2021 , according to a recent report report of the National Investment Center for Housing and Elderly Care.
However, delinquencies on loans to skilled nurses as a percentage of total loans fell from 0.8% in the first quarter to 1.6% at the end of the second quarter.
Retirement homes and long-term care recorded $ 62.7 million in foreclosures in the second quarter. The achievement follows nine consecutive quarters without recorded foreclosures, NIC said.
Newly concluded construction loans are on the rise for seniors and skilled nurses “as lenders have become more comfortable with development activities after four quarters of downturn in activity linked to the pandemic,” wrote Anne Standish, NIC research statistician.
Construction loans rose 46.7% for seniors living in the same store, quarter over quarter, which the NIC said was the largest quarterly increase recorded since the fourth quarter of 2017. Construction loans increased 71.4% for skilled nurses in one store, quarter-quarterly growth. Data on skilled nursing construction loans was based on a relatively small basis, NIC noted.