Real estate billionaire Tom Barrack has warned that the US commercial mortgage market is on the brink of collapse due to the coronavirus and says the effect of the pandemic could dwarf the impacts of the Great Depression.   

Barrack, who is the CEO and chairman of Colony Capital Inc., predicted there would be a 'domino effect' that would greatly impact the US economy and Americans if banks and the government don't work together to mitigate the crisis. 

In a Medium post on Sunday, he said the impact on the US economy due to the coronavirus pandemic and the subsequent public health measures taken in response to it has caused high-performing mortgage loans to decrease in value.

Barrack, who is a longtime friend of President Donald Trump, warned that if banks and non-bank lenders were not given the flexibility to undertake loan restructuring efforts, loan repayment demands would likely escalate systematically.

He said it could potentially trigger a 'domino effect' of borrower defaults that would impact the entire real estate market, including property owners and landlords.