Commercial mortgage delinquencies increased in the first quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report.

“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,” said Reggie Booker, MBA’s Associate Vice President of Commercial Real Estate Research. “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 (CMBS), 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.

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.

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 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 delinquency measures are detailed in Appendix A.

To download current report go to: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/commercial-multifamily-mortgage-delinquency-rates.

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 go to: https://www.mba.org/home/product/commercial-multifamily-loan-performance-survey-73258.