WASHINGTON – (RealEstateRama) — Congressman French Hill (AR-02) introduced H.R. 4620, the Preserving Access to CRE Capital Act of 2016. H.R. 4620 modifies Dodd-Frank’s risk retention requirements for prudently underwritten, low-risk commercial real estate loans, the current Dodd-Frank rules are set to take effect in December 2016.
As one of the largest sources of credit for commercial and multifamily real estate in the United States, the commercial mortgage backed securities (CMBS) market is an important element of the over $3 trillion commercial real estate debt market, especially in smaller markets. CMBS provides financing to retail, office, apartments, industrial, health care, and many other types of commercial real estate. If the rule is not modified before going into effect, borrowers across the country could experience significant reductions in access to credit, unwarranted increases in borrowing costs, and reduced liquidity, which could impair economic development and job creation in areas that need it most.
Following introduction of the bill, Congressman Hill stated:
“Washington and its one-size-fits-all regulators have put forth rule after rule without taking into account input from affected industries or the effects they can have on development and job growth, especially in smaller commercial markets. This minor, but important, modification to credit risk retention rule will help ensure continued liquidity and affordable financing options for commercial real estate borrowers in Arkansas and throughout the country.”
Click here to read the full text of the bill.
contact: Mike Siegel, (202) 225-2506 333