WASHINGTON—Commercial and multifamily real estate loans took another tumble in the third quarter, falling 53% compared with Q3 2007, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Banking Originations. All asset classes felt the decline, but the hotel sector saw the largest drop of 87%. The office sector was hit the second worst drop with a 61% loan volume decline. The hotel sector also led the way with the largest Q2 to Q3 2008 decline of 71%. In terms of loan investor types for all asset classes, conduits for commercial mortgage-backed securities dropped 93% year over year, commercial bank portfolio loans fell 71% and life insurance company loans decreased 27%.
