The highest delinquency rate was observed in CMBS loans, which rose to 5.15%, up 0.33% from the previous quarter. Life insurance company portfolios reported one of the lowest rates, at 0.46%, but still saw a slight uptick of 0.03%.
Banks and thrifts saw their delinquency rate climb to 1.24%, driven by longer-term challenges with loan performance. Meanwhile, Fannie Mae and Freddie Mac reported delinquency rates of 0.56% and 0.39%, respectively.
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MBA noted that construction and development loans, often backed by single-family residential projects, were excluded from the report but are included in broader regulatory definitions of commercial real estate. For banks and thrifts, loans backed by owner-occupied commercial properties are part of the delinquency data.
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