CRE Finance Council's Letter to SEC Stresses CMBS as Unique Asset Class

NEW YORK—August 2, 2010—CRE Finance Council today filed a comment letter with the Securities and Exchange Commission regarding its proposal to revise Regulation AB, which requires additional disclosures and transparency for asset-backed securitizations. The primary focus of the comment letter pertained to commercial mortgage-backed securities (CMBS).

The CRE Finance Council has set up task forces that are working to create increased transparency and disclosure, including enhanced underwriting standards, PSA standardization, industry standards for representations and warranties as well as Annex A disclosures. This work will be completed alongside its work on Regulation AB as well as regulations expected to be promulgated under Dodd-Frank.

The CRE Finance Council has long been at the forefront of enhancing disclosure and transparency for the commercial real estate finance market.  "We believe, for example, that the industry's longstanding CRE Finance Council Investor Reporting Package® provides the information required by CMBS investors," said Dottie Cunningham, Chief Executive Officer, CRE Finance Council."We propose that the Commission take into account the unique aspects of CMBS and build on the protective measures already in place in the space rather than seeking to replace them."

The organization asked that the SEC consider the Council's responses in light of the important role that CMBS and commercial real estate finance play within the U.S. economy. The CRE Finance Council plans to continue its dialogue with the SEC as they coordinate rulemaking following the recent passage of Dodd-Frank Act. 

Media Relations: Kenneth Reed, CRE Finance Council, 212-589-0961

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