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Trump Urges Passage of Senate Housing Bill

May 12, 2026

Last night, President Donald Trump urged the House to swiftly pass the Senate version of the 21st Century ROAD to Housing Act (H.R. 6644) that includes a ban on large institutional investors owning single-family rental (SFR) housing. 

Why it matters: Trump has remained largely silent on the issues since the Senate passed the bill 89-9 on March 12. The House has delayed considering the bill after objections to the treatment of build-to-rent (BTR) properties and other provisions; the committee had been close to releasing amended text. 

Go deeper: We have previously covered the Section 901 provisions passed in the Senate that would ban investors from owning 350 or more SFR homes.

• While the purchase ban would exempt BTR, it would force owners to sell new BTR to consumers within seven years.
• The bill also would have unintended consequences on other forms of multifamily housing and create a confusing compliance regime. Reports indicate that BTR investment has slowed or stopped in some areas. 
• The Senate passed the provision unchanged despite strong objections from the real estate industry, including homebuilders.

Yes, but: The House continues to work on its counteroffer to the Senate bill. Reports from Politico over the weekend indicate the Section 901 ban on large institutional investors ownership of single family rental homes is likely to change in a House version. 

• A bipartisan group of 76 House members sent a letter to leadership last month indicating their opposition to the BTR provisions.
• No official text has been released and it is not clear that House GOP and Democratic negotiators have signed off on the final text. 
• The reported GOP amendments would eliminate the seven-year build-to-rent (BTR) divestment requirement and revise the definition of single-family home. 
• If an amended bill is released this week, the House could vote on the bill as soon as next week. 
• It is not clear if or when the Senate would act on a changed housing bill should the House pass an amended bill.

What they’re saying: Prior to Trump’s post, Politico reported President Donald Trump has privately expressed his opposition to the seven-year BTR divestment and considered posting his thoughts before backing down.

• The President’s reported hesitancy bolstered the House position against the Senate, but the latest post may derail changing the bill. 
• House leadership has not yet responded to the President’s demand. 
• The SFR ban has been the White House’s central demand to any housing bill, though the Senate language went far beyond the January 2026 executive order. 

What's next: CREFC and other industry groups continue to work with lawmakers and staff on Section 901 issues and the broader housing bill. 

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

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Private Credit on Regulatory Radar

May 12, 2026

Authorities are seeking better visibility into the private credit markets, now estimated at $1.5 to $2 trillion, particularly where life insurers are involved. Private credit is generally defined as loans originated by nonbanks and negotiated on a bilateral basis between borrowers and lenders.

Why it matters: Private credit has become a meaningful source of financing for mid-sized companies and, increasingly, larger borrowers and AI infrastructure projects. Regulators and policymakers are assessing whether insurers' shift toward private credit introduces opaque risks that could affect policyholders or trigger rapid asset sales.

Driving the news

• The FSB: The global body coordinating financial regulation released a report on May 6 examining the private-credit ecosystem, bank interlinkages, borrower credit quality, and data gaps. The report notes that the sector can support economic activity by offering alternative credit solutions to borrowers, but remains untested to a prolonged economic downturn.
• Treasury: On May 7, Treasury Secretary Scott Bessent met with state insurance commissioners and the National Association of Insurance Commissioners (NAIC) to discuss recent developments in private credit markets.
• Federal Reserve: On May 8, the U.S. central bank released its biannual Financial Stability Report. It noted strong household balance sheets and well-capitalized banks. However, “a wide range of market contacts who participated in the Survey of Salient Risks in March and April most frequently cited geopolitical risks, oil shocks, risks from artificial intelligence (AI), private credit, and persistent inflation.”
  • The report added the following new sections: “Updates in the Classification of Nonbank Financial Institutions” and “Developments in Private Credit.”
  • Survey respondents viewed private credit as:

Market Size and Composition

• The FSB estimates the global private-credit market to be $1.5 trillion –$2 trillion as of year-end 2024, with the United States having the largest market, with an estimated size of around $1 trillion. 
  • Bank exposure to private credit funds is a relatively small share of banks' total assets and capital, with member data capturing about $220 billion in drawn and undrawn credit lines. However, other estimates suggest the amounts could be more than twice as large.
  • Private equity-backed insurers in the U.S. now control nearly $900 billion in insurance liabilities, a significant rise from $67 billion in 2012.
• Private credit’s growth, according to the FSB, has been driven by the increased demand for high-yield and tailored credit due to:
  • Prolonged low-interest rate environment;
  • Changes in post-crisis bank regulation; and 
  • Expansion of private equity.

Regulators are focused increasingly on transparency, particularly as it relates to private credit in the insurance sector. 

• The FSB found that borrowers that are predominantly in private credit typically lack public ratings, and that valuations are often conducted less frequently and may involve significant discretion. 
• According to American Banker, Secretary Bessent said Treasury is monitoring the growing exposure of insurers to private credit to ensure that state-based oversight remains effective. 
• State regulators also shared their efforts to monitor private credit and protect policyholders. Elizabeth Dwyer, director of Rhode Island's Department of Business Regulation Director and NAIC president-elect, stated in a press release:

What's next 

• The FSB outlined four follow-up work areas:
  • Continuing to assess vulnerabilities related to interlinkages between a range of nonbanks within the private finance ecosystem;
  • Mapping the components of the complex and evolving ecosystem;
  • Facilitating supervisory discussions to enhance authorities’ ability to assess and supervise vulnerabilities and risks; and 
  • Addressing data challenges that make it difficult to monitor vulnerabilities. 
• On the insurance side, NAIC adopted a challenge process to so-called private letter ratings, which are confidential credit opinions issued by rating agencies for privately-placed securities. 
  • According to American Banker, this challenge process is the culmination of a multi-year effort that would allow the NAIC to challenge any rating. 
  • NAIC has a team of 30 analysts that review individual transactions to ensure compliance with regulatory standards. No rating challenges have been processed to date. 
  • A rating challenge would have to be a "material," requiring a three-notch downgrade or more for regulators to determine if a rating needs to be changed.

Please contact Sairah Burki (sburki@crefc.org) with questions.

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Introducing Spotlight on Servicing: Understanding CMBS Appraisal Reductions

May 11, 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. 

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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

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