Commercial mortgage delinquency and credit quality

• Bank commercial property, noncurrent1.23%¹FDIC, June 30, 2026
• Bank CRE, 30+ days delinquent1.53%³Federal Reserve, Q2 2026
• CMBS delinquency8.02%²Trepp, September 2026
• Life company delinquency1.33%⁴MBA, Q3 2026

14 measures, and what each one counts

"Delinquency" means different things in different series: days late, whether nonaccrual loans count, which loans are in the pool. Each row below names its publisher and definition. Read a number against its own history, not against another row.

Banks: low losses, with the stress at the largest and smallest banks

Banks hold $1.94 trillion nonfarm nonresidential, $667.6 billion multifamily, $453.5 billion construction and development¹. Problem loans are concentrated by bank size, not spread evenly: Banks over $250 billion: 2.24% of nonfarm nonresidential loans noncurrent, versus 0.85% at $1 billion to $10 billion banks. Multifamily is highest at $10 billion to $250 billion banks (1.63%).¹ Community banks: 0.88% of nonfarm nonresidential, 0.80% of multifamily and 0.85% of construction loans noncurrent¹. Losses stay small: Net charge-offs year to date: 0.12% nonfarm nonresidential, 0.16% multifamily, 0.12% construction¹. The FDIC counted 47 problem banks (1.1% of all banks), down seven⁸.

The Federal Reserve's series shows the turn: 1.70% at the 100 largest banks, down each quarter since Q3 2025; 1.27% at all other banks, up each quarter since Q3 2025⁹. For a small-balance borrower that is the number to watch: the banks outside the 100 largest include the community banks most owners of 5 to 50 unit buildings and small strip centers call first, and their delinquency is the part still rising.

Past due or nonaccrual, non-owner-occupied commercial property, by bank size (Q2 2026)

On this broader 30-day measure the pattern is a U: the largest banks carry the highest rate, the smallest banks the second highest, and mid-size banks the lowest.

Bank noncurrent rates by loan type, last eight quarters

Bank CRE delinquency and charge-off rates, last twelve quarters

Delinquency on bank CRE loans (excluding farmland) rose from 0.63% in Q3 2022 to a peak of 1.58% in Q4 2025, and was 1.53% in Q2 2026.

CMBS: where the delinquencies are

Trepp's rate was 8.02%² in September 2026, after 7.85% in August 2026, down 1 basis point from July (Trepp)¹⁰. KBRA, counting only the deals it rates, had 7.7% delinquent ($25.8 billion), 10.3% distressed including specially serviced current loans (KBRA, September 2026)⁷. Trepp's Q3 review counted $69.53 billion¹¹ of CMBS loans in special servicing.

In September 2026 multifamily had the second-highest CMBS delinquency rate after office. That is a CMBS-pool result, not an apartment-market result: FDIC data show bank multifamily loans at 1.10% of multifamily loans noncurrent¹, and the MBA's Q3 survey put Fannie Mae and Freddie Mac at 1.16%, up from 1.11% in Q2 (MBA)⁴. It is reasonable to expect conduit lenders and bond buyers to look harder at multifamily rent rolls, expense growth and interest-only structures for a while.

Life companies, agencies and small-balance lenders

Life companies, the agencies and FHA all run low in the MBA's Q3 2026 survey: life companies 1.33%, up from 1.19% in Q2 (MBA)⁴, Fannie Mae and Freddie Mac 1.16%, up from 1.11% in Q2 (MBA)⁴, FHA 0.90%, down from 1.06% in Q2 (MBA)⁴. The ACLI's fact book counted 98.5%¹² of life insurer mortgages in good standing at year-end 2024 ( 98.7%¹² for commercial mortgages alone). Low leverage is most of the reason: the same fact book put $615 billion (78%)¹² of general-account mortgages below 71% LTV. At the other end, a public non-bank lender to small investors reported 9.6%¹³ of its held-for-investment loans nonperforming (Velocity Financial, 90+ days or nonaccrual), and those loans carry coupons to match; see the rate survey.

What this means when you apply

Questions people ask

What is the commercial mortgage delinquency rate?

It depends on whose loans you count. At banks, 1.53% in Q2 2026, down from 1.56% in Q1 and 1.58% in Q4 2025 (Federal Reserve, 30+ days, commercial banks). In CMBS, Trepp's September 2026 rate was 8.02%. Life company portfolios were at 1.33%, up from 1.19% in Q2 in the MBA's Q3 2026 survey.

Why do the CMBS delinquency rates from Trepp, KBRA and the MBA differ?

Each counts a different set of loans and a different definition of late. KBRA covers only the deals it rates, MBA uses its own servicer survey, and Trepp publishes its own monthly series. Compare each with its own history, never with the others.

Does a high CMBS delinquency rate affect my loan?

Indirectly. It makes bond buyers and lenders more careful with the property types behind the losses, which tends to show up as lower leverage and wider spreads for office and some multifamily. A stabilized property with a clean rent roll still finances; the questions just get harder.

More market data and tools

• Lending conditions (Fed SLOOS)Whether banks are easing or tightening commercial real estate loan standards, by loan type, from the Federal Reserve loan officer survey.
• Loan maturitiesHow much commercial mortgage debt matures in 2026 and 2027, which lenders and property types hold it, and what a maturing borrower should check first.
• Commercial Mortgage Rate Survey (November 2026)Indicative rates by loan program, Treasury and SOFR readings, HMDA medians, SBA 504 and CMBS and bridge coupons, each with its source and date.
• OfficeFinancing an office building now: which banks, life companies, CMBS lenders and debt funds still lend, office spreads, rollover tests and an example.
• Large multifamilyFinancing a 50+ unit apartment property: Fannie Mae DUS, Freddie Mac Optigo, FHA 223(f), life companies, CMBS and bridge ranked, with a sizing example.
• Maturing balloon loanYour commercial loan balloons soon. Size the refinance gap, pick the lender to call first, use the open prepayment window, and fill a shortfall.
• Bank vs CMBSA bank loan against a CMBS conduit loan on retail, office or industrial: recourse, proceeds, the cost of selling early and which borrower each suits.
• CMBS conduit loansHow conduit CMBS loans are priced and sized in 2026, what SEC-filed pools show for LTV, DSCR and debt yield, and what defeasance costs to get out early.

Sources

1. FDIC Quarterly Banking Profile, Second Quarter 2026, Table V-A, as of June 30, 2026
2. Trepp, CMBS Delinquency Report, September 2026 (Oct 2, 2026), as of September 30, 2026
3. Federal Reserve, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, as of June 30, 2026
4. MBA, CREF Loan Performance Survey, Q3 2026 (NewsLink, October 27, 2026), as of September 30, 2026
5. FDIC Quarterly Banking Profile Q2 2026, time series spreadsheets, as of June 30, 2026
6. Federal Reserve, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, as of June 30, 2026
7. KBRA, CMBS Loan Performance Trends: September 2026, as of September 30, 2026
8. FDIC Quarterly Banking Profile, Second Quarter 2026 (statement, Chart 10), as of June 30, 2026
9. Federal Reserve, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks (top 100 banks and other banks, seasonally adjusted), as of June 30, 2026
10. MBA NewsLink, Trepp: CMBS Delinquency Rate Falls One Basis Point in August (NewsLink issue of September 3, 2026; article dated September 8, 2026), as of August 31, 2026
11. Trepp, The Q3 2026 Quarterly Data Review (Oct 26, 2026), as of October 26, 2026
12. ACLI Life Insurers Fact Book 2025 (80th ed.), as of December 31, 2024
13. Velocity Financial, Inc. Form 10-Q for the quarter ended June 30, 2026 (SEC EDGAR), as of June 30, 2026
14. FDIC BankFind Suite financial data API (call report items LNRENRES, NCRENRES, LNREMULT, NCREMULT, LNRECONS, NCRECONS), summed across reporting banks, as of June 30, 2026
15. Federal Reserve Board, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks (data download), as of June 30, 2026

How we check figures: methodology and editorial policy.