The Commercial Real Estate Finance Council is hoping to gain more flexibility in the Dodd-Frank law, according to The Wall Street Journal. The law dictates that those issuing securities including commercial real estate loans must follow a 5 percent risk-retention requirement.
The Commercial Real Estate Finance Council believes these rules would result in fewer commercial real estate loans. From the WSJ:
b The group is set to release a new set of standards for commercial mortgage-backed securities. The standards are designed to enhance disclosure and encourage responsible underwriting of commercial real-estate loans and could serve as a template for what kind of loans might be exempt from the risk-retention rules.b
The CRE finance industry is working to make the risks that come along with purchasing CMBS more transparent.
You can learn more about the Commercial Real Estate Finance Councilb s arguments for flexibility from the WSJ, and then let us know what you think.
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Tags: commercial real estate, CRE, loans, risk-retention
