WASHINGTON—Commercial mortgage delinquencies were mixed in the third quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report.
“Commercial mortgage delinquencies increased for CMBS and GSE loans in the third quarter and decreased slightly for banks and life companies as pressures remain in certain segments of the market,” said Reggie Booker, MBA’s Associate vice president of commercial real estate research. “Property values have stabilized, but loan performance is impacted by shifting property fundamentals, including higher vacancy rates and slower rent growth. Delinquency performance remains highly dependent on property type and loan structure.”
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% 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,” MBA explained.
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the third quarter of 2025 were as follows:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 1.27%, a decrease of 0.02%age points from the second quarter of 2025
- Life company portfolios (60 or more days delinquent): 0.47%, a decrease of 0.04%age points from the second quarter of 2025
- Fannie Mae (60 or more days delinquent): 0.68%, an increase of 0.07% percentage points from the second quarter of 2025
- Freddie Mac (60 or more days delinquent): 0.51%, an increase of 0.04 percentage points from the second quarter of 2025
- CMBS (30 or more days delinquent or in REO): 6.59%, an increase of 0.23 percentage points from the second quarter of 2025