Image: AI-generated multifamily illustration; no specific property is depicted.
Private-label CMBS accounted for about half of the $11.6 billion in delinquent securitized multifamily loans tracked by Trepp in August 2026, despite representing about 12% of the $635.82 billion outstanding balance. This dataset covers tracked securitized loans, not all multifamily debt.
Trepp reported $75.48 billion of private-label CMBS at a 7.69% delinquency rate, approximately $5.8 billion past due. Freddie Mac accounted for $518.99 billion at 0.80%, approximately $4.2 billion delinquent. CRE CLOs accounted for $41.3 billion at 3.88%, approximately $1.6 billion delinquent.
The total delinquent balance increased from $7.04 billion in August 2024, a calculated rise of about 65%. Private-label delinquency increased from 3.30% to 7.69%, while Freddie Mac’s rate rose from 0.48% to 0.80%. The overall August 2026 delinquent balance was approximately 1.8% of the tracked outstanding balance.
CRE CLO delinquency declined from 6.05% to 3.88% as that sector’s outstanding balance contracted by about $5.5 billion. Trepp cautions that managers can remove impaired loans from pools: a lower observed rate can reflect loan removals rather than a cure of the underlying borrower’s distress.
Analysis: compare loan populations, vintages and changes in pool composition before drawing conclusions from headline rates. The private-label concentration identifies a diligence priority, while the CLO caveat limits what an improving rate alone can establish. Delinquency is distinct from special servicing and does not measure realized losses.
Key Takeaways
- Private-label CMBS represents about 12% of Trepp’s tracked securitized multifamily balance and about half of its delinquent dollars.
- The $11.6 billion delinquent balance is approximately 1.8% of $635.82 billion outstanding and about 65% above August 2024, calculated from reported amounts.
- Loan removals may lower the observed CRE CLO delinquency rate without resolving the underlying distress.
Trepp — Where Is Multifamily Delinquency Concentrated? Private-Label CMBS Holds Half of Delinquent Debt, October 15, 2026. August 2026 tracked securitized multifamily: $635.82B outstanding/$11.60B delinquent; private-label $75.48B, 7.69%, $5.80B delinquent (50.2% of delinquent dollars); Freddie Mac $518.99B, 0.80%, $4.15B; CRE CLO $41.35B (rounded $41.3B in text), 3.88%, $1.60B. August 2024 total delinquent $7.04B, private-label 3.30%, Freddie 0.48%, CLO 6.05% and $46.80B outstanding. CLO managers can remove impaired loans, understating distress among loans that passed through pools. Calculations: $11.6B/$635.82B approximately 1.8%; $11.6B/$7.04B minus one approximately 65%. https://www.trepp.com/trepptalk/securitized-multifamily-delinquency-cmbs-cre-clo
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