Freddie Mac multifamily delinquency hits a 20-year high of 0.64%

Freddie Mac's multifamily delinquency rate climbed to 0.64% in August 2026 from 0.48% a year earlier, the highest in 20 years, according to Mortgage Point figures cited by Multifamily Dive. Fannie Mae's rate moved the other way, easing to 0.57% from 0.68% across the same 12 months.

Bank-held apartment delinquencies fell to 1.41% in the second quarter of 2026 from a multiyear high of 1.47% in the first, according to a CRED iQ analysis of FDIC data from all insured institutions.

Multifamily investors told Multifamily Dive that banks have become more aggressive with borrowers, working through troubled properties instead of rolling them. That shift follows years in which community banks have been running off multifamily loans, a retreat Multifamily Dive documented in August. Shimon Greenspan, CFO of Long Beach, California-based apartment owner Westland Real Estate Group, said lenders first let borrowers "extend and pretend," but since July more owners have accepted that rates will not fall soon enough to save them. "I think we're going to start to see a lot of that stuff work out in ways that it hadn't previously been forced to work out," Greenspan said.

Gaia Real Estate co-founder and CEO Danny Fishman told Multifamily Dive he expects debt funds to grow less willing to bail out troubled borrowers: "Those [debt] funds saved them and basically they were kicking the can another year too. And I think that comes to an end."

Two properties in Multifamily Dive's reporting reached special servicing about a year and a half after origination: Cypress Village Apartments in Saint Ann, Missouri, and The Abington in Memphis, Tennessee. The borrowers were Pinchos D. Shemano and Heyme Bleier, according to David Putro, associate managing director at Morningstar Credit. Both loans carried outstanding payment shortfalls, cash management problems, failures to comply with deposit account control agreements, unresolved insurance deficiencies and uncured lien and title matters, according to Morningstar. "It was a newish loan — just closed in February 2025," Putro said in emailed comments.

Morningstar Credit's CMBS Newsflashes through August also flagged problems at multiple properties in New York, and a new appraisal cut the value of the JPMCC 2021-NYAH portfolio, according to Multifamily Dive.

Both agency and bank multifamily delinquency sit far below the 6.53% CMBS delinquency rate the Mortgage Bankers Association reported on Oct. 1, though that figure spans all property types. A loan closed in February 2025 was in special servicing by mid-2026. Investors quoted here say forbearance is ending.