The exchange for the debt economy
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Earlier in 2025, Trepp commercial mortgage-backed securities report showed the CMBS delinquency rate pushing above 7% for the first time since 2021, a warning sign for lodging and multifamily loans.
An MBA “chart of the week” also pointed to continued strain in office and multifamily collateral even as other sectors held up better.
“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 at MBA.
“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.”
Banks and thrifts ended the quarter with 1.23% of commercial mortgages 90 days or more past due or in non‑accrual, slightly lower than in the third quarter.
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