Despite the quarterly decline, seriously delinquent VA loans (90+ days or in foreclosure) were up 50 basis points year-over-year. FHA loans also saw a sharp 80-basis-point increase in serious delinquencies from the same time last year.
Commercial delinquencies
MBA’s latest Commercial Real Estate Finance (CREF) Loan Performance Survey also showed a continued uptick in delinquency rates for commercial properties.
“The delinquency rate for commercial mortgages increased again in the first quarter of 2025, driven by higher delinquencies on lodging and industrial properties,” said Judie Ricks, MBA’s associate vice president of commercial real estate research. “MBA is closely watching delinquency trends, as there have been increases in both later-stage and new delinquencies.”
In the first quarter, CMBS delinquencies were 5.2% (down from 5.3%), life company loans were 1.0% (up from 0.9%), GSE loans were 0.6% (up from 0.55%), and FHA multifamily/healthcare loans were 1.1% (up from 1.0%).
While multifamily delinquency rates remained stable, office and lodging sectors continued to show elevated stress.