Penner: In 1991, Regulated Lenders Completely Stopped Quoting Commercial Real Estate Loans
Ethan Penner · Ep 90: A Conversation with Wall Street Pioneer Ethan Penner · Joe Lonsdale · May 23, 2024 · at 4:23
Ethan Penner, founder of Mosaic Real Estate Investors and a pioneer of commercial mortgage-backed securities (CMBS), describes the 1991 lending freeze that prompted his creation of commercial real estate securitization.
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“In 1991, when the light switch went off for real estate, The real estate industry found itself completely without a lending community to service it. All commercial real estate. So it didn't matter whether you had an apartment, a shopping center, a hotel, an office building. It didn't matter whether it was highly occupied, wonderful piece of real estate with tremendous stability and income. You could not get a lender to quote a loan.”
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