"Commercial and multifamily mortgage lending slowed to a trickle in the fourth quarter," said Jamie Woodwell, (top right photo) Vice President of Commercial Real Estate Research at the Mortgage Bankers Association.
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. These numbers show the impact of the recent credit crunch and other market disruptions.
FOURTH QUARTER 2008 80 PERCENT LOWER THAN FOURTH QUARTER 2007
Among investor types, conduits for CMBS saw a significant decrease of 98 percent compared to last year's fourth quarter.
FOURTH QUARTER 2008 11 PERCENT LOWER THAN THIRD QUARTER 2008
Fourth quarter 2008 mortgage originations were 53 percent lower than originations in the third quarter of 2008.
Among investor types, loans for life insurance companies saw a decrease in loan volume of 73 percent compared to the third quarter of 2008, loans for conduits for CMBS saw a decrease in loan volume of 60 percent compared to the third quarter of 2008, commercial banks decreased by 43 percent during the same time span, and GSEs volume decreased 21 percent from the third quarter 2008 to fourth quarter 2008.
Compared to the third quarter of 2008, fourth quarter originations for retail properties saw a 75 percent decrease.