Commercial and Multifamily Mortgage Delinquencies Mixed in Fourth-Quarter 2025, MBA Reports
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Commercial mortgage delinquencies were mixed in the fourth quarter of 2025, according to the Mortgage Bankers Association’s latest Commercial Delinquency Report.
“Commercial mortgage performance remained generally stable in the fourth quarter of 2025, with most capital sources displaying modest improvements in delinquency rates,” said Reggie Booker, associate vice president of Commercial Research. “Delinquencies for Fannie Mae loans increased for the second straight quarter and are now above the midpoint of their historical range going back to 1996. While elevated stress in CMBS continues to reflect ongoing challenges in certain property sectors, overall loan performance remains resilient. In 2026, investors will be closely watching how refinancing pressures and economic conditions shape credit performance across capital sources.”
MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac (the GSEs). Together, these investors hold more than 80% of commercial mortgage debt outstanding. MBA’s analysis incorporates the measures used by each capital source to track the performance of their loans. Because each tracks delinquencies in its own way, delinquency rates are not directly comparable from one group to another. As an example, Fannie Mae reports loans receiving payment forbearance as delinquent, while Freddie Mac excludes those loans if the borrower is in compliance with the forbearance agreement.
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the fourth quarter of 2025 were as follows:
• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.23%, a decrease of 0.04 percentage points from the third quarter of 2025;
• Life company portfolios (60 or more days delinquent): 0.32%, a decrease of 0.15 percentage points from the third quarter of 2025;
• Fannie Mae (60 or more days delinquent): 0.74%, an increase of 0.06 percentage points from the third quarter of 2025;
• Freddie Mac (60 or more days delinquent): 0.44%, a decrease of 0.07 percentage points from the third quarter of 2025; and
• CMBS (30 or more days delinquent or in REO): 6.58%, unchanged from the third quarter of 2025.
Construction and development loans are generally not included in the numbers presented in this report but are included in many regulatory definitions of ‘commercial real estate’ despite the fact they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers, or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties. Differences between the delinquencies measures are detailed in Appendix A.
To download current report, click here.
In addition to this report, MBA works with its servicing members to develop the CREF Loan Performance Survey each quarter, which highlights delinquency rates by property type. For more information on the most recent results and the historical series go to: https://www.mba.org/home/product/commercial-multifamily-loan-performance-survey-73258.
