Few new loans are being made, meaning the origination market for the REIT sector has "all but dried up," Patrick Harden writes in a Seeking Alpha commentary. "Many borrowers, even large commercial tenants, are simply trying to extend or modify existing loans. Even the few new borrowers in the market no longer meet most underwriting standards now that the securitization market is dead and the credit risk can't be offloaded," Harden writes.

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