Commercial Mortgage Delinquencies Rise in Q3 Across Lender Types

Commercial mortgage delinquencies increased in the third quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. All lender types saw delinquencies rise during the quarter. 

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of Q3 were as follows: 

• Banks and thrifts (90 or more days delinquent or in non-accrual): 1.24%, an increase of 0.09 percentage points from Q2 2024; 

• Life company portfolios (60 or more days delinquent): 0.46%, up 0.03 percentage points from Q2; 

• Fannie Mae (60 or more days delinquent): 0.56%, up 0.12 percentage points from Q2; 

• Freddie Mac (60 or more days delinquent): 0.39%, up 0.01 percentage points from Q2; and 

• CMBS (30 or more days delinquent or in REO): 5.15%, up 0.33 percentage points from Q2. 

“The share of the balance of delinquent commercial mortgages increased for every major capital source during the third quarter of 2024,” said Jamie Woodwell, MBA’s head of commercial real estate research. “The increases varied by capital source and were driven by the particularities of each individual loan and property. Stresses differ by property type and subtype, geographic market and submarket, loan type and vintage, borrower type and more.”