Banks are pulling back loans from commercial real estate, Walker & Dunlop CEO Willy Walker told CNBC earlier this week.

"You look at the broader commercial real estate markets and where spreads have gone and CMBS and CLOs, that market is for all practical purposes closed down right now," he told the network's Squawk on the Street segment. "Spreads have gapped out so much that getting loans securitized through that execution is tough. I think the big question right now is why aren't banks lending…banks are trading at ridiculously low multiples because they're not lending."

Walker said banks "have all pulled back and that's led the entire chain to stop moving."

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