Commercial and Multifamily Mortgage Delinquency Rates Increased in Second-Quarter 2025

WASHINGTON, D.C. (September 11, 2025) - Commercial mortgage delinquencies increased in the second quarter of 2025, according to the Mortgage Bankers Association's (MBA) latest Commercial Delinquency Report.

"The delinquency rate for commercial mortgages increased in the second quarter of 2025 across most major capital sources," said Reggie Booker, MBA's Associate Vice President of Commercial Real Estate Research. "The largest increase was among CMBS loans, driven by rising delinquencies in both multifamily and office properties. Delinquency trends continue to reflect differences in property type, loan structure, geography, and borrower profile."

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 second quarter of 2025 were as follows:

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 view the report, visit: 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, visit: https://www.mba.org/home/product/commercial-multifamily-loan-performance-survey-73258.