At a glance
- The servicing rate is at its highest since December 2014, Buschbom said in emailed comments to Multifamily Dive.
- About $398 million of conduit and single-borrower multifamily loans became newly delinquent in October, led by the Cove at Tiburon loan, while about $211 million cured, Buschbom said.
- For buyers of newly issued apartment paper, vintage now sits alongside maturity as a credit question.
The multifamily CMBS delinquency rate is at its highest since December 2015 and has posted the largest jump of any property type over the past year, according to Stephen Buschbom, head of applied research and analytics at Trepp. The servicing rate is at its highest since December 2014, Buschbom said in emailed comments to Multifamily Dive.
About $398 million of conduit and single-borrower multifamily loans became newly delinquent in October, led by the Cove at Tiburon loan, while about $211 million cured, Buschbom said. The two flows net to roughly $187 million of added delinquent balance. "There's also a lot of movement underneath that small net change," he said.
For buyers of newly issued apartment paper, vintage now sits alongside maturity as a credit question. Three of October's new delinquencies were Houston loans written in 2025, barely a year old, so a 2025-vintage pool needs its seasoning tested before refinancing. Lenders pricing bridge or construction debt against those loans face the same check, and it arrives years before the maturity wall does.
Freddie Mac's K-Series multifamily delinquency rate rose to 0.96% in October from 0.8% in September and 0.55% in May. The October increase came from borrowers missing payments rather than from loans failing to refinance at maturity, Buschbom said.
For scale, the all-property CRE CMBS delinquency rate fell 15 bps month over month to 7.87% in October, while the CRE servicing rate rose 25 bps to 11.74%, the highest since December 2012. Office and retail delinquencies rose during the month while lodging and industrial fell; lodging, mixed-use and industrial drove the servicing increase, with office and retail declining on that measure.
At the end of the second quarter, CMBS and private securitizations accounted for about 3% of outstanding multifamily mortgage debt, according to the Mortgage Bankers Association, which makes the delinquency move a signal from a narrow slice of the market rather than the whole of it.
There's also a lot of movement underneath that small net change.Stephen Buschbom, head of applied research and analytics at Trepp
Reported by the Real estate debt desk from Multifamily Dive. Published . Corrections