On March 2, 2016 the House Financial Services Committee also passed H.R. 4620, the Preserving Access to CRE Capital Act of 2016 by a bipartisan vote of 39-18. H.R. 4620 would exempt certain commercial mortgage backed securities (“CMBS”) from risk retention. The bill also allows for a pari-passu structure if two b-piece buyers fulfill the risk retention requirement under the final rule. The final rule allows a senior-subordinate structure for the b-piece retention option, and does not contemplate a pari-passu option.
SFIG’s membership has divergent opinions on H.R. 4620, as a majority of its investment-grade investors prefer the CMBS retention options as finalized under the risk retention rule, and do not support the legislation. Alternatively, SFIG’s issuer and b-piece buyer members are supportive of the adjustments to CMBS retention under H.R. 4620.
To view the bills approved by the Committee and their vote totals, please click here.
To view SFIG letter on QCLO and CRE legislation, please click here.
To learn more about SFIG’s advocacy efforts, please contact Michael.Flood@sfindustry.org.