US Commercial and Multifamily Mortgage Delinquency Rates Increase in Q1

On Tuesday, the Mortgage Bankers Association (MBA) reported that according to its latest Commercial Delinquency Report (CDR), commercial mortgage delinquencies in Q1 increased in all 5 of the top capital sources.

MBA notes that its 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. Together, these investors hold more than 80% of commercial mortgage debt outstanding.

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of Q1 were as follows:

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.28%, an increase of 0.02 percentage points from 2024Q4.
• Life company portfolios (60 or more days delinquent): 0.47%, an increase of 0.04 percentage points from 2024Q4.
• Fannie Mae (60 or more days delinquent): 0.63%, an increase of 0.06 percentage points from 2024Q4.
• Freddie Mac (60 or more days delinquent): 0.46%, an increase of 0.06 percentage points from 2024Q4.
• CMBS (30 or more days delinquent or in REO): 6.42%, an increase of 0.64 percentage points from 2024Q4.

In a statement accompanying the report, MBA Associate VP of Commercial Real Estate Research Reggie Booker said:

“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.”