Commercial Delinquencies Paint Mixed Picture in Q1: Mortgage Bankers Association

Commercial mortgage delinquencies were mixed in the first quarter of 2026, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. The highest delinquency rate belongs to CMBS at 7.28%, along with the biggest quarterly increase at seven percentage points.

In addition to CMBS, delinquency rates for each lender group at the end of Q1 were as follows:

• Freddie Mac (60 or more days delinquent): 0.43%, a decrease of 0.01 percentage points from Q4 2025; 

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.24%, an increase of 0.01 percentage points;

• Life company portfolios (60 or more days delinquent): 0.38%, an increase of 0.06 percentage points; and

• Fannie Mae (60 or more days delinquent): 0.78%, an increase of 0.04 percentage points.

“Commercial mortgage loan performance varied across capital sources during the first three months of the year,” said Reggie Booker, MBA’s associate VP 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.”