According to the most recent Commercial Delinquency Report from the Mortgage Bankers Association (MBA), there were a variety of commercial mortgage delinquencies in the fourth quarter of 2025.
“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, MBA’s Associate VP of Commercial Research. “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.”
Delinquency rates for each category at the end of the fourth quarter of 2025 were as follows, based on the unpaid principal balance (UPB) of loans:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 1.23%, a decrease of 0.04 percentage points from Q3 of 2025;
- Life company portfolios (60 or more days delinquent): 0.32%, a decrease of 0.15 percentage points from Q3 of 2025;
- Fannie Mae (60 or more days delinquent): 0.74%, an increase of 0.06 percentage points from Q3 of 2025;
- Freddie Mac (60 or more days delinquent): 0.44%, a decrease of 0.07 percentage points from Q3 of 2025; and,
- CMBS (30 or more days delinquent or in REO): 6.58%, unchanged from Q3 of 2025.
“While elevated stress in CMBS continues to reflect ongoing challenges in certain property sectors, overall loan performance remains resilient,” Booker said. “In 2026, investors will be closely watching how refinancing pressures and economic conditions shape credit performance across capital sources.”
Note: 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
To read the full report, click here.
