Risk Retention and Commercial Real Estate

As mandated by the Dodd-Frank Act, federal regulators jointly released proposed risk-retention rules for the U.S. financial markets. Responses are due to the regulators by June 10th.

CRE Finance Council has established a Task Force to study the effect that the proposed rules will have on the commercial real estate finance industry and, will respond to the regulators.

In general, the Dodd-Frank Act requires originators to maintain a 5 percent stake in assets they securitize, commonly known as “skin-in-the-game.”  Specifically for CMBS, the Dodd-Frank provides a menu of options for how federal regulators may implement “skin-in-the-game,” which may include a percent risk retention (by originator, securitizer or third-party investor), underwriting standards and controls, representations and warranties and other enforcement mechanisms.

CREFC is also meeting with policymakers and market participants to ensure that the voice of commercial real estate is heard during the current comment period. For more information about how to join these efforts, please contact Mike Flood.

2012

     March 26, 2012
     Chairmen Bachus, Garrett Ask Regulators to Analyze Cost of PCCRA   

     February 13, 2012
     CREFC Responds to Proposed Conflicts-of-Interest Rule 

2011

     August 2, 2011
     Chairman Bachus, Garrett PCCRA Letter to the Regulators 

     August 1, 2011
     CREFC Joins Coalition Letter on Risk Retention 

     July 19, 201
     CREFC Responds to the Proposed Risk Retention Rules 

     July 19, 2011
     CREFC Response Letter to Proposed Risk Retention Rules 

     June 3, 2011
     Securitization is a Vital Link in the Financing Chaing  

     June 3, 2011
     Playback of Member Review of CREFC’s Draft Retention Response (members only)

     May 18, 2011
     CREFC Testimony – State of the Securitization Market 

     April 29, 2011
     Citi Research: Risk Retention Expected Revisions Create Uncertainty 

     April 14, 2011
     CRE Finance Council Press Release Describing CREFC Testimony and Risk Retention

     April 14, 2011
     CRE Finance Council’s Written Testimony Before House Financial Services Committee

     April 12, 2011
     DB Research: How to “fix” the Proposed Retention Rules 

     March 31, 2011
     CRE Finance Council’s Analysis of Risk-Retention Rules

     March 2011
     Federal Regulators' Risk-Retention Rules

     March 2011
     Summary of Federal Regulators' Risk-Retention Rules

     January 18, 2011
     FSOC Study on Risk Retention

2010

     October 19, 2010 
     Federal Reserve Report to Congress on Risk Retention    

     July 21, 2010
     Dodd-Frank Wall Street Reform and Consumer Protection Act