Commercial and Multifamily Mortgage Delinquency Rates Increased in Q1 2025 

Commercial mortgage delinquencies increased in the first quarter of 2025, according to the Mortgage Bankers Association’s latest Commercial Delinquency Report, released earlier this month.  

Commercial mortgage delinquencies rose across all major capital sources in the first quarter of 2025, reflecting growing pressure on certain property sectors and loan types. While delinquency rates remain relatively low for most investor groups, the uptick in CMBS delinquencies signals heightened stress in parts of the market that lack refinancing options or other challenges. 

MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources: commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, and Fannie Mae and Freddie Mac. Together, these investors hold more than 80 percent 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. 

A breakdown on capital sources

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the first quarter of 2025 were as follows: 

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.28 percent, an increase of 0.02 percentage points from the fourth quarter of 2024; 

• Life company portfolios (60 or more days delinquent): 0.47 percent, an increase of 0.04 percentage points from the fourth quarter of 2024; 

• Fannie Mae (60 or more days delinquent): 0.63 percent, an increase of 0.06 percentage points from the fourth quarter of 2024; 

• Freddie Mac (60 or more days delinquent): 0.46 percent, an increase of 0.06 percentage points from the fourth quarter of 2024; and 

• CMBS (30 or more days delinquent or in REO): 6.42 percent, an increase of 0.64 percentage points from the fourth quarter of 2024. 

To download the current report visit this link.

In addition to this report, MBA works with its servicer members to develop the CREF Loan Performance Survey each quarter.  For more information on the most recent results and the historical series click here.

—Posted on June 26, 2025