Dive Brief:

• The multifamily commercial mortgage-backed securities servicing rate rose 68 basis points month over month to 9.22% in October, according to Trepp Inc. Six months ago, it was 9.08%. A year ago, it was 8.32%.
• The multifamily CMBS delinquency rate rose 5 basis points month over month to 8.09% in September, partially driven by the $210 million mortgage against the 283-unit Cove at Tiburon apartment property in Tiburon, California, according to Trepp. Six months ago, the delinquency rate was 7.71%, and a year ago it was 7.12%.
• The loan at Cove at Tiburon matured in March 2025. A November 2025 modification extended its term through October 2026, when it went unpaid. Currently, a request to exercise a six-month extension, which could return the loan to performing status, is under review, according to Trepp.

Dive Insight:

The CMBS delinquency rate is now at its highest level 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 level since December 2014.

“There's also a lot of movement underneath that small net change,” Buschbom told Multifamily Dive in emailed comments. 

Buschbom said 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. “Three of the new delinquencies were Houston loans written in 2025, loans that are barely a year old,” Buschbom said.

In addition, Buschbom said Freddie Mac's K-Series multifamily delinquency rate rose to 0.96% in October, up from 0.8% in September and 0.55% in May. “That's still low, but the direction is clear, and October's increase came from borrowers missing payments, not from loans failing to refinance at maturity,” he said.

The overall commercial real estate CMBS delinquency rate fell 15 bps MOM to 7.87% in October, while the CRE servicing rate rose 25 bps to 11.74% — the highest mark since December 2012.

Office and retail delinquencies rose during the month, while lodging and industrial rates fell. Lodging, mixed-use and industrial helped drive the increase in servicing, while office and retail declined.

At the end of the second quarter, CMBS and private securitizations were about 3% of outstanding multifamily mortgage debt, according to the Mortgage Bankers Association.

Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.