Commercial, multi-family mortgage originations down in third quarter

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Commercial and multi-family mortgage loan originations were 54 percent lower in the third quarter of 2009 than in the same period last year and fell 12 percent since the quarter earlier, the latest Mortgage Bankers Association’s quarterly survey shows. Every property type saw year-over-year declines, the largest of which was retail properties, with a 62 percent decrease in loan origination volume. Loans for office space decreased by 56 percent, and there were 46 percent and 40 percent fewer hotel and multi-family property loans, respectively. Conduits for commercial mortgage-backed securities were the investors that saw the greatest decrease in loan volume: they received 90 percent fewer loans in the third quarter this year than in 2008. The MBA attributed the year-over-year declines to tight credit and low demand for new loans. TRD

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