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CRE Finance World, Summer 2012

Is 2012 Different, or just 2011 “2.0”? Regulation AB Disclosures: CREFC responded in July to the SEC’s We are working hard on your behalf, and are grateful for that re-proposal of portions of its Regulation AB reforms. Regulation opportunity. That said, CREFC is a member-driven organization, AB sets forth the disclosure and compliance requirements for shelf and we need your help more than ever. In order to make sure final eligibility for asset-backed securities. Specifically, CREFC provided Dodd-Frank rules end up creating a workable playing field for input in four key areas: you to conduct business, we need your expertise in explaining our business to Washington. •Certification either by the CEO or an executive officer in charge of the securitization regarding both the disclosures within the Our recently instituted series of monthly meetings between prospectus and the design of the securitization; CREFC Government Relations and the government relations teams of our Members are one important way of strengthening our voice •The appointment of a credit risk manager to review the underlying in the halls of Congress — and the more that you, our Members, assets upon triggering a repurchase request; become involved, the more success we will enjoy collectively. •Inclusion in ongoing reports of any investor requests to be Thank you, and we look forward to your continued efforts on behalf communicated with other investors; and of the industry! •Repurchase request dispute resolution procedures. The SEC is expected to release final rules that align with the risk-retention rules. That said, we believe the “final” rules could take one of two forms. The easiest route for the SEC would be to release final Reg AB rules along with final risk-retention rules, likely in 2013. Alternately, the SEC could release an “interim final rule” in 2012, setting forth securitization disclosures and leave an open piece of the rule for retention disclosures (once regulators agree to final rules). Last Word — Get Involved! No one understands more than we do that sentiment toward Congress and the regulators is at an all time low. The industry wants to get back to business and spend less time in Washington. While that is perfectly understandable, the next two years are going to determine the turf on which the industry will be allowed to finance commercial real estate – and Washington, not New York, will determine that playing field. A publication of Summer issue 2012 sponsored by CRE Finance World Summer 2012 9


CRE Finance World, Summer 2012
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