ENCOMMERCIAL REAL ESTATE CREDIT & REFINANCING · OCTOBER 28, 2026
Commercial Mortgage Delinquencies Increase Modestly in the Third Quarter
MBA's latest survey found modestly higher commercial-mortgage delinquency balances in the third quarter, with office loans highest by property type and CMBS highest among major capital sources.
What MBA released on October 27
Source publication date: October 27, 2026. The Mortgage Bankers Association reported that the balance of commercial mortgages that were not current increased in the third quarter. Its CREF Loan Performance Survey covered about $3 trillion of loans as of September 30, representing 59% of the roughly $5 trillion in commercial and multifamily mortgage debt outstanding as of the second quarter. MBA described the increase as modest and noted that performance remained historically strong for most capital sources.
- 01CMBS rose from 4.82%
- 02Office remained the highest property type
- 03Upcoming maturities remain a headwind
Performance differed by property type and capital source
MBA said office continued to have the highest delinquency rates among major property types and that CMBS had the highest level among the capital sources surveyed. CMBS balances 30 or more days delinquent increased to 4.97% from 4.82%. Life-company delinquency balances increased to 1.33% from 1.19%, and GSE balances increased to 1.16% from 1.11%, while FHA balances declined to 0.90% from 1.06%. Definitions and portfolios differ, so rates should not be compared as if they measured identical risks.
Maturities and higher rates can pressure refinance execution
MBA pointed to challenging multifamily and office fundamentals, higher rates, and a large volume of scheduled maturities as continuing headwinds. A performing national portfolio does not ensure that a specific property can refinance at its current balance. Lenders may test current net operating income, occupancy, lease rollover, concessions, capital needs, debt yield, DSCR, value, sponsor support, and the economics of an extension, paydown, sale, or recapitalization.
Practical borrower takeaway
Prepare a property-level maturity plan well before the due date. Reconcile the rent roll to leases and collections, update trailing operating results, quantify tenant rollover and capital work, confirm reserves and recourse, and obtain realistic rate, amortization, value, and proceeds assumptions. Stress a lower valuation, weaker NOI, higher debt service, and required equity contribution, then engage the existing servicer and alternative capital sources while time remains.
Commercial-property borrowers should update trailing cash flow, rent rolls, reserves, maturity schedules, and refinance assumptions early, especially when office or multifamily fundamentals and higher rates could pressure coverage.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.