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Multifamily drives most modified CMBS, CRE CLO loan balance
Across May to July 2026, $2.36 billion of modified CMBS and CRE CLO loans were tracked, with maturity extensions the largest category.
Commercial Observer, citing CRED iQ data, tracked 82 modified commercial mortgage-backed securities (CMBS) and commercial real estate collateralized loan obligation (CRE CLO) loans totaling $2.36 billion in outstanding balance from May through July 2026.
The report found that the modification mix is shifting away from a sole focus on maturity extensions. Maturity date extensions remained the biggest category, with 21 loans totaling $802.5 million, or 34 percent of modified balance, while forbearances accounted for 15 loans and $514.0 million, or 21.8 percent of balance.
Combination modifications, which pair an extension with other relief such as a paydown, rate adjustment, or reserve requirement, totaled 10 loans and $345.6 million, or 14.7 percent of balance. The remaining 36 loans fell into other or miscellaneous modification categories, totaling $695.4 million, or 29.5 percent of balance.
Taken together, extensions, forbearances, and combination modifications made up 70.5 percent of modified balance this period, down from the more widespread “extend and pretend” pattern seen in earlier reports. Multifamily led the property types by modifying activity, and CRED iQ pointed to challenges including rate resets on floating-rate loans and slower rent growth in oversupplied metros, while hotel still accounted for roughly one-fifth of modified balance and office for less than 10 percent.