On Wednesday, February 24, the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises held a hearing on "The Impact of the Dodd-Frank Act and Basel III on the Fixed Income Market and Securitizations." During the hearing, subcommittee members and witnesses discussed the effects that overly-broad and burdensome regulations for commercial real estate financing and lending institutions have on the economy. In addition to discussing the existing Basel III capital standards rules, they discussed the new commercial real estate risk retention rules scheduled to go into effect on December 24, 2016.
NAR sent a letter to the Subcommittee thanking them for holding the hearing and stressing the cumulative detrimental effects such regulations have on access to capital for commercial real estate. NAR stressed the need for common-sense changes, such as widening the Qualified Commercial Real Estate (QCRE) exemption to the risk retention rules to allow for more low-risk CMBS transactions to be included in it.
Read NAR's Letterpdf