3Q commercial/multifamily originations decline.

Position:Commercial - Survey
 
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Commercial and multifamily mortgage bankers' loan originations dipped during the third quarter of 2008, while a year-over-year decrease was seen across most property types and investor groups, according to the Mortgage Bankers Association (MBA).

MBA's Quarterly Survey of Commercial/Multifamily Mort-gage Bankers Originations noted that third-quarter originations were 53 percent lower than during the same period in 2007.

Decreases in total commercial/multifamily mortgage originations continued to be led by a drop in commercial mortgage-backed security (CMBS) conduit loans and loans for commercial bank portfolios, according to Jamie Wood-well, MBA's vice president of commercial real estate research.

"Uncertainty stemming from the credit crunch, and now the deteriorating economy, has led to a continued pull-back among both lenders and borrowers," said Woodwell. "The need among most investor groups to conserve capital, and the uncertainty of how the slowing economy will affect property fundamentals, is fueling a prolonged pause in all aspects of commercial real estate activity."

These numbers show the impact of the recent credit crunch and other market disruptions, added Woodwell.

The decrease in commercial/multi-family lending activity during the third quarter was driven by decreases in originations for all property types, noted the survey.

When compared with the third quarter of 2007, the overall 53 percent decrease included an 87 percent decrease in loans for hotel properties--a 61 percent decrease in loans for office properties, a 59 percent decrease in loans for health-care properties, a 39 percent decrease in loans for industrial properties, a 30 percent decrease in multifamily property loans and a 30 percent decrease in retail property loans.

Among investor types, conduits for CMBS saw a significant decrease of 93 percent compared with the third quarter of...

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