Commercial Mortgage Delinquencies Up During Q2

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Commercial mortgage delinquencies were on the rise during the second quarter, according to data from the Mortgage Bankers Association (MBA).

Based on the unpaid principal balance of loans, the MBA reported the following second quarter delinquency rates based on sector:

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.29%, an increase of 0.01 percentage points from the first quarter;
• Life company portfolios (60 or more days delinquent): 0.51%, an increase of 0.04 percentage points from the first quarter;
• Fannie Mae (60 or more days delinquent): 0.61%, a decrease of 0.02 percentage points from the first quarter of 2025;
• Freddie Mac (60 or more days delinquent): 0.47%, an increase of 0.01 percentage points from the first quarter;
• CMBS (30 or more days delinquent or in REO): 6.36%, an increase of 0.45 percentage points from the first quarter of 2025.

“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.”