Commercial, Multifamily Mortgage Delinquencies Mixed in First Quarter

Commercial mortgage delinquencies were mixed in the first quarter of 2026, according to the Mortgage Bankers Association’s latest Commercial Delinquency Report.

“Commercial mortgage loan performance varied across capital sources during the first three months of the year,” said Reggie Booker, MBA’s Associate Vice President of Commercial Research. “While overall loan performance remains relatively healthy, increases in CMBS and Fannie Mae delinquencies point to continued pressure from higher borrowing costs, refinancing challenges, and weaker conditions in some segments of the commercial real estate market. At the same time, delinquency rates for bank and Freddie Mac loans were stable or declined, reflecting the broader resilience of the market.”

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 2026 were as follows:

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.24%, an increase of 0.01 percentage points from the fourth quarter of 2025;
• Life company portfolios (60 or more days delinquent): 0.38%, an increase of 0.06 percentage points from the fourth quarter of 2025;
• Fannie Mae (60 or more days delinquent): 0.78%, an increase of 0.04 percentage points from the fourth quarter of 2025;
• Freddie Mac (60 or more days delinquent): 0.43%, a decrease of 0.01 percentage points from the fourth quarter of 2025; and
• CMBS (30 or more days delinquent or in REO): 7.28%, an increase of 0.7 percentage points from the fourth quarter of 2025.

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.

Download the current report here.

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