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News

Recap: Senate Hearing Focuses on Insurance Costs, Availability 

May 6, 2025

The Senate Banking Committee held a May 1 hearing titled Examining Insurance Markets and the Role of Mitigation Policies with the following witnesses:

  • Robert Gordon, Senior Vice President, Policy, Research & International, American Property Casualty Insurance Association (APCIA);
  • Alex Epstein, President and Founder, Center for Industrial Progress; 
  • Michael Newman, General Counsel, Insurance Institute for Business and Home Safety (IBHS); and 
  • Jessica Pyska, Supervisor, County of Lake, California 

During the hearing, senators and witnesses cited several underlying drivers of the higher cost and lower availability of property insurance, including:

  • Demographic shifts to areas with higher climate risk,
  • Inflation, particularly related to building materials;
  • Legal system abuse, and 
  • Regulatory limitations.

They also raised concerns about discriminatory practices, market competition, and how federal policy shifts, including tariffs, affect cost volatility across states.

Disaster mitigation, infrastructure resilience, and forest management featured prominently as strategies to lower long-term insurance costs. 

  • Committee members and witnesses engaged in detailed discussions about property resilience efforts. Ms. Pyska affirmed the importance of hardening homes and discussed Lake County's attempts to "cluster harden" entire communities with wraparound fire breaks to ensure the entire community is resilient.
  • Sen. Warner (D-VA) noted the U.S. Chamber of Commerce suggested that every $1 invested in resilience and disaster preparation reduces a community's economic costs by $7.
  • However, it is not clear whether resilience efforts have thus far resulted in lower insurance costs for property owners.
Multiple members criticized cuts to federal programs like Building Resilient Infrastructure and Communities Grants (BRIC) and other grants provided by the Federal Emergency Management Agency (FEMA). 

  • Sen. Andy Kim (D-NJ) raised concerns about efforts to privatize or eliminate the National Flood Insurance Program (NFIP), questioning whether the private sector is equipped to absorb these costs while keeping insurance premiums low. 
  • APCIA’s Gordon explained that the NFIP, which covers 4.7 million households, charges significantly less than the private market. He also stressed the important role NFIP plays in encouraging community floodplain management and developing flood maps, and building codes. 
  • To listen to a podcast in which CREFC’s Sairah Burki and David McCarthy share their thoughts about the NFIP with The Commercial Property Executive’s Therese Fitzgerald, please click here.
CREFC’s Property & Resilience Committee has closely covered CRE insurance issues over the past few years via presentations from experts, webinars, and panels at conferences. Please see here for more information and stay tuned for forthcoming webinars. 

Contact Sairah Burki (sburki@crefc.org) with any questions.

Contact 

Sairah Burki
Managing Director,
Head of Regulatory Affairs and Sustainability
703.201.4294
sburki@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. © 2025 CRE Finance Council. All rights reserved.
Recap: Senate Hearing Focuses on Insurance Costs, Availability
May 6, 2025
The Senate Banking Committee held a May 1 hearing titled Examining Insurance Markets and the Role of Mitigation Policies.

News

CRE Securitized Debt Update

May 6, 2025



Private-Label CMBS and CRE CLOs

Three transactions totaling $2.3 billion priced last week:

  • INCREF 2025-FL1, a $1.2 billion CRE CLO sponsored by Invesco Commercial Real Estate Finance Trust. The managed transaction is comprised of 28 loans secured by 98 properties. The pool is split between multifamily (54.9%) and industrial (45.1%) properties.
  • BMO 2025-5C10, a $628 million conduit backed by 34 five-year loans secured by 67 properties across 20 states from BMO, Citi, Deutsche, Starwood, Goldman, Greystone, SocGen, Zions, and UBS.
  • BAY 2025-LIVN, a $430 million SASB backed by a floating-rate, five-year loan (at full extension) to finance PCCP’s acquisition of 75 multifamily properties, totaling 1,759 units, in the San Francisco Bay Area.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totaled $51.4 billion, representing an 84% increase from the $27.9 billion recorded for the same period in 2024.

Spreads Largely Steady

  • Conduit AAA and A-S spreads were unchanged at +103 and +150. YTD, they have widened by 28 bps and 45 bps, respectively.
  • Conduit AA and A spreads were unchanged at +205 and +265. YTD, they have widened by 70 bps and 100 bps, respectively.
  • Conduit BBB- spreads were unchanged at +615. YTD, they have widened by 190 bps.
  • SASB AAA spreads were tighter by 5 bps to a range of +137 to +160, depending on property type. YTD, they have widened by 30 – 45 bps.
  • CRE CLO AAA spreads were unchanged at +175, while BBB- spreads were tighter by 10 bps at +425.

Agency CMBS

  • Agency issuance totaled $1.3 billion last week, comprising $904.4 million of Fannie DUS, $195.4 million in Freddie Multi-PCs, and $164.9 million of Ginnie transactions.
  • Agency issuance for the year totaled $44.1 billion, 30% higher than the $34 billion for the same period last year.
Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566
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. © 2025 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
May 6, 2025
Three transactions totaling $2.3 billion priced last week.

News

Tax Update: House Delays Action on Bill

May 6, 2025

Republicans delayed the rollout and consideration of key elements of the reconciliation legislation, including hearings on tax policy legislation and changes to Medicaid.

Why it matters: The House leadership still wants to pass a bill by Memorial Day, yet competing priorities among members of Congress and the White House are proving to be challenging. 

By the numbers: The tax-writing House Ways and Means Committee was originally planning a markup on May 7, but that has been delayed to, at least, the week of May 12. Reports indicate lawmakers are close on many issues, but still have to agree on several key issues: 
 
  • SALT: Raising the individual state and local tax (SALT) deduction cap, currently $10,000, is still under debate. New York, New Jersey, and California Republicans have made raising this cap their “red line.” With a five-vote majority, they have enough votes to tank any bill without SALT relief. 
  • Business SALT Cap: Colloquially known as B-SALT or corporate C-SALT, this provision has been under active consideration in House discussions. No details have emerged on what specifically would be covered, but conflicting reports indicate it would be pared down or potentially not included.
  • Clean Energy Tax Credits: House Republicans have been targeting Inflation Reduction Act (IRA) tax programs as a way to reduce spending or offset some of the new tax cuts. But a group of 21 Republicans sent a letter in March urging leadership that any changes be “targeted and pragmatic” with a mind to future private-sector investment. Another group of 38 House Republicans sent a letter last week asking for a full repeal of the credits. 
  • White House Priorities: While the President made no taxes on tips, overtime, and social security key campaign priorities, the White House continues to offer additional items. Last week, the White House told congressional leaders it would seek immediate and full expensing treatment for factory construction, both the buildings and the equipment. 

The big picture: The many loose ends on the tax front may contribute to a delay, but House leaders remain confident of meeting a May deadline. Challenges remain, however.

  • The brewing fight on Medicaid, which Democrats are focusing their energy on highlighting, is raising political alarms for some Republicans and even the White House.
  • Deficit hawks in the House continue to saber-rattle on spending cuts. Rep. Chip Roy (R-TX) and 20 House members sent a letter urging a number of “meaningful reforms” to Medicaid. 
  • The Senate is not planning to mark up legislation, but it will likely have a heavy hand in moderating taxes or cuts once a bill passes the House. 
  • The debt ceiling deadlines continue to loom over the entire legislation. Treasury is expected to clarify the “X date” in the next week or two. 

Contact David McCarthy (dmccarthy@crefc.org) with any 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. © 2025 CRE Finance Council. All rights reserved.
Tax Update: House Delays Action on Bill
May 6, 2025
Republicans delayed the rollout and consideration of key elements of the reconciliation legislation, including hearings on tax policy legislation and changes to Medicaid.

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