Commercial mortgage delinquencies were mixed in the fourth quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. Most of the lender types reported by MBA saw slight decreases in their delinquency rates, although movement in either direction was minimal.
“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.”
He continued, “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.”
Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end Q4 2025 were as follows:
- Banks and thrifts: 1.23%, a decrease of 0.04 percentage points from Q3 2025;
- Life company portfolios: 0.32%, down 0.15 percentage points;
- Fannie Mae: 0.74%, an increase of 0.06 percentage points;
- Freddie Mac: 0.44%, down 0.07 percentage points; and,
- CMBS: 6.58%, unchanged from the Q3 2025.
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