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News

Introducing Spotlight on Servicing: Understanding CMBS Appraisal Reductions

May 8, 2026

CREFC is pleased to share the release of Understanding CMBS Appraisal Reductions, the first report in a new Spotlight on Servicing educational series focused on the servicing business. 
 
Appraisal reductions play a critical role in CMBS servicing, influencing cash flow, bond performance, and investor control. This report explains how they work, including key trigger events, a typical Appraisal Reduction Amount (ARA) calculation, and the impact on bondholder payments and ratings. The report provides a clear introduction to how appraisal reductions function in CMBS. 

Download

The next edition in the series will look at hot topics in servicing, including a preview of servicing topics to be covered at CREFC’s Annual Conference in June. Spotlight on Servicing reports can be found in the CREFC Resource Center or Member Alert archives.

For questions or additional information:

Rich Carlson
Senior Director, Servicing Liaison
CRE Finance Council
rcarlson@crefc.org

Contact 

Rich Carlson
Senior Director, Servicing Liaison
CRE Finance Council
rcarlson@crefc.org

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.
Introducing Spotlight on Servicing: Understanding CMBS Appraisal Reductions
May 8, 2026
CREFC is pleased to share the release of Understanding CMBS Appraisal Reductions, the first report in a new Spotlight on Servicing educational series focused on the servicing business.

News

Congressional Roundup: Shutdown Ends (Mostly)

May 5, 2026

Congress had a busy week to close out the month of April with several key pieces of legislation advancing after numerous delays. The House moved some longstanding legislation across the finish line last week before lawmakers left for a one week recess.

DHS Authorization Moves Forward: Congress funded most of the Department of Homeland Security (DHS), which had been shutdown from February 14 through April 30, they did so on a voice vote, meaning that those in favor of the bill and those opposed was not officially recorded. 

The legislation—originally passed by the Senate—funds the DHS through September 30 of this year. It covers the Coast Guard, TSA, Secret Service, FEMA and the Cybersecurity and Infrastructure Security Agency, along with other offices within DHS that don’t deal with immigration enforcement, more on that below.

  • The core issue throughout the shutdown had been whether or not to fund ICE with Democrats seeking a number of reforms to the agency.
  • The Senate's DHS funding bill had stalled in the lower chamber for more than a month. Speaker Mike Johnson (R-LA), had declined to put the bill on the floor as it didn’t fund immigration enforcement.
  • Reportedly, Johnson changed course under pressure from the White House as they noted they would not be able to pay DHS employees starting later this month if the bill was not passed.

While the shutdown is largely over, the effects will continue to be felt for weeks or months to come. Over 1,100 TSA employees have quit since the shutdown began, with most expected not to return, and many DHS initiatives had stalled.

Reconciliation 2.0: Republicans are using the reconciliation process to fund ICE and CBP for three years, which will circumvent the need for Democratic votes in the Senate. 

  • The House passed the budget resolution last week, which now unlocks the procedures to advance the effort. The Senate passed its own resolution the week prior. 
  • As a refresher, budget reconciliation is a special legislative process in the Senate that allows certain tax and spending bills to pass with a simple majority (51 votes) instead of the usual 60-vote threshold needed to overcome a filibuster. 
  • This is the same legislative maneuver that the GOP used to pass the One Big Beautiful Bill Act last summer. 
  • In hopes of expediting passage, Senate Majority Leader John Thune (R-SD) wants to keep the bill focused on immigration enforcement funding. 

What’s next: President Trump has set an aggressive timeline of June 1 to have this bill signed into law, which would mark the fastest budget reconciliation process in history. However, with competing priorities on what should be included in the bill and razor thin margins in the House, the result is far from certain. 

FISA (Foreign Intelligence Surveillance Act): Congress has spent much of the last two months grappling with reauthorizing the Foreign Intelligence Surveillance Act (FISA), which governs federal surveillance authority of non-Americans aboard. 

  • Leadership has still not been able to clench a long-term deal with FISA skeptics, thus the House by a vote of 261-111 passed a 45 day short-term extension of Section 702. The Senate passed it by unanimous consent. 
  • Lawmakers remain divided over the scope of reforms, particularly around warrant requirements for querying U.S. persons’ data but agreed, at least for now, that allowing the authority to lapse was not an option. 
  • The extension buys time for continued negotiations, though the debate exposed persistent fault lines between national security priorities and civil liberties concerns. 

The Farm Bill: The House passed the 2026 Farm Bill last week by a 224–200 bipartisan vote, marking progress after years of delays. 

  • The bill updates agricultural, conservation, and rural development programs, but it still has an uphill battle to pass the Senate before becoming law
  • The legislation remains politically contentious, with major debates over SNAP food aid cuts, farm subsidies, and regulatory issues (like pesticide rules and livestock standards). The Senate is expected to revise key provisions

Advancing these bills was an important victory for Speaker Johnson who navigated bitter internal GOP divisions to deliver some much needed wins for the GOP.

However, many items are still on the docket for when they return on May 12. In the meantime, the midterm elections continue to draw closer, and with just six months to go, passing legislation and garnering bipartisan compromise will become more and more difficult.

Contact James Montfort (jmontfort@crefc.org) with any questions.

Contact  

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.
Congressional Roundup: Shutdown Ends (Mostly)
May 5, 2026
Congress had a busy week to close out the month of April with several key pieces of legislation advancing after numerous delays.

News

Senators Introduce TRIA Legislation

May 5, 2026

A bipartisan group of senators introduced a clean, seven-year reauthorization of the Terrorism Risk Insurance Act (TRIA), a program that provides a federal backstop to losses from certain terrorist attacks. 

  • Senator Dave McCormick (R-PA) and Sen. Tina Smith (D-MN) led a bipartisan group of 24 senators on the bill. 

Why it matters: After the 9-11 attacks, the TRIA backstop has been essential in providing affordable terrorism risk insurance to commercial real estate owners/borrowers and other policyholders. Without action, the program will expire after December 31, 2027. 

  • CREFC and the Coalition to Insure Against Terrorism (CIAT) have been meeting with lawmakers and urging them to reauthorize TRIA in 2026. 
  • The original senate co-sponsors include nearly all of the Senate Banking Committee and Senate Minority Leader Chuck Schumer. 

Go deeper: The House began its push for reauthorization with a January markup of the TRIA Program Reauthorization Act of 2026 (H.R. 7128), which advanced out of committee 51-2. The House bill was largely a clean reauthorization for seven-years with two tweaks: 

  • The bill raises the program trigger threshold from $5 million in losses to $10 million by 2029, which tracks with an inflation adjustment from the original 2002 law. 
  • Treasury would have a 90-day window in which to certify a terrorist attack. Certification is necessary to trigger the backstop payments to insurers under the program. 

What’s next: The Senate will likely attach any TRIA reauthorization bill to a larger ‘must-pass’ package to advance it. The House may consider its own bill through an expedited process requiring a two-thirds majority vote, but leadership has not indicated a firm timeline. 

The bottom line: The strong, bipartisan support in both chambers makes TRIA reauthorization a strong possibility, but lawmakers must navigate the procedural hurdles to get a bill to the President’s desk. 

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.
Senators Introduce TRIA Legislation
May 5, 2026
A bipartisan group of senators introduced a clean, seven-year reauthorization of the Terrorism Risk Insurance Act (TRIA).

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