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DHS Shutdown Update

March 3, 2026

The shutdown of the Department of Homeland Security (DHS) heads into its third week with few signs of actual progress on reopening the department.

• The U.S. military action against Iran has heightened domestic security concerns, which may move lawmakers toward a deal framework. 

Why it matters: The DHS funding lapse began February 14 amid Democratic pushback on Immigration and Customs Enforcement (ICE) funding. The bill is the last remaining piece of FY 2026 government appropriations.

Democrats sent their last offer to fund the department to the White House on February 16. This offer included the following reforms to the agency as a stipulation of any funding deal:

• A mandate for body cameras,
• Judicial warrants before agents can enter private property (rather than administrative warrants,
• A ban on ICE agents wearing face masks,
• Stricter use-of-force policy, and 
• New training standards for agents.

The White House stated that many of those reforms were “non-starters” and did not respond to Democrats with an official counter offer until February 26, nearly two weeks later. 

• Senate Minority Leader Chuck Schumer (D-N.Y.) and House Minority Leader Hakeem Jeffries (D-N.Y.) said in a statement that they are “reviewing the counter offer closely.”

This past Friday, TSA employees received only a partial paycheck. As the shutdown of the agency heads into its third week, it’s unclear what, if anything, will incentivize lawmakers to come together and work on a solution.

Shutdown Effects: While services such as TSA and FEMA remain active, staff are still unpaid. To the good, ICE received significant funding from the One Big Beautiful Bill Act that it can tap to continue operations.

• Global Entry suspended: DHS announced that the Global Entry program, which expedites customs processing for pre-approved travelers, is halted for the duration of the shutdown.
• TSA PreCheck was initially paused, then restored. An earlier decision to suspend TSA PreCheck was reversed after pushback from industry and lawmakers, and the program remains operational, though DHS says it may adjust operations based on staffing constraints.
• Travel disruptions and staffing strain: Reports show that, despite official program continuations, some airports have temporarily shifted travelers from PreCheck to standard screening lanes due to resource limitations, compounding potential delays.
• Broader DHS impacts: The shutdown has also affected other areas of the department, including restrictions on FEMA travel and non-disaster response activities under current funding limitations.
  

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

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Shape the Future of CREFC: Call for Forum Chair-Elect Nominations

March 3, 2026 

A vital part of the CRE Finance Council’s mission is driven by our Forums—specialized peer groups that serve as the engines of industry progress. Beyond providing a platform for discussing sector-specific trends and regulatory shifts, these groups are instrumental in tackling systemic issues and driving tangible change in how the industry operates, including the development and widespread adoption of market-leading best practices.

To ensure these groups continue to lead the industry conversation and catalyze meaningful change, we are officially opening nominations for our next class of Forum Chair-Elects.

This is a unique opportunity for members to take a leadership role within the Council, helping to curate programming and advocate for the interests of their specific market segment.

About the Forums

Our Forums are divided by constituency and asset focus to ensure relevant, high-level engagement across the CRE Finance industry. We are currently seeking leadership for the following groups:

• Alternative Lenders and High Yield Investors
• B-Piece Investors 
• GSE/Multifamily Lenders
• Investment-Grade (IG) Bondholders
• Issuers
• Portfolio Lenders – Bank & Insurance Company
• Servicers – Master and Special

Nominee Requirements

To maintain the high caliber of leadership our members expect, we invite nominations for individuals who meet the following criteria:

• Member Alignment: Nominees must be current employees of a CREFC member firm.
• Sector Expertise: Candidates should demonstrate significant professional experience and a proven track record within the specific Forum’s sector.
• Commitment to the Industry: A desire to contribute to the collective voice of the CRE finance community and a willingness to collaborate with fellow industry leaders.

Submit Your Nomination

Whether you are interested in stepping into a leadership role yourself or would like to recommend a colleague who has demonstrated exceptional insight and dedication to the industry, we want to hear from you.

The nomination process is straightforward and can be completed via the link below: SUBMIT A NOMINATION 

For a detailed breakdown of each Forum’s mission and current activities, please visit our Forums Overview page.

Join us in steering the future of CRE finance—nominate a leader today.

Contact Rohit Narayanan (RNarayanan@crefc.org) with any questions.

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Senate Tees Up Housing Bill 

March 3, 2026

The Senate voted 84-6 to begin considering the housing supply bill H.R. 6644, which includes the large institutional investor SFR ban language. 

• The updated legislative text combines elements of previous House and Senate housing bills. 
• The updated draft was released shortly before senators voted on the clotures motion. The vote sets up debate, but the bill can change before final passage. 
• Click here for a section-by-section summary of the new bill.

Why it matters: The House and Senate have each passed their own bill that would aim to boost housing supply. The bill attempts to streamline certain federal regulatory requirements and incentivize local pro-supply land use policies. 

• Yes, but: The bill also includes a nationwide purchase ban on SFR, which would impose a significant regulatory burden on institutional capital supporting housing. See story above. 

The big picture: Senate floor action is the latest development in the dueling nature between the chambers on housing legislation. Here is a recap on the developments over the past year: 

• July 2025: Senate Banking unanimously passes S. 2651 the ROAD to Housing Act. 
• October 2025: Full Senate amends the must-pass National Defense Authorization Act (NDAA) to include ROAD and passes the bill. 
• December 2025: House Financial Services Committee leaders reject the housing provisions in the NDAA, which did not include House input. The committee advances H.R. 6644, the Housing for the 21st Century Act (Housing 21) on a vote of 50-1. 
• February 2026: The full House passes H.R. 6644 by a 390-9 vote and sends it to the Senate. Several bipartisan community banking regulatory tailoring bills were included in the final version of the House-passed bill. 
• March 2026: The Senate is using H.R. 6644 as a vehicle for floor consideration, which means they intend to strip out the House language and insert their own mix of legislation into the final bill.

What’s next: The way forward remains murky and largely depends upon cross-chamber negotiations. 

• Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) has said she will oppose any changes to the ROAD bill, including the House community bank legislation. 
• House Republican leaders have alluded to problems with certain Democratic provisions in the Senate ROAD bill.
• The White House has said that any housing legislation must include the administration’s SFR ban. Prior to the Senate vote, the White House released a Statement of Administrative Position that confirmed the President would sign the present bill. 

The bottom line: The Senate does not want to take up the bill with changes from the House once it passes, which means the House will likely be pressured to accept whatever text the Senate ultimately passes. 

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

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It’s Just the Right Time for CREFC’s High-Yield, Distressed Assets & Servicing Conference

March 3, 2026

As we move into the end of the first quarter, the commercial real estate finance landscape continues to be defined by shifting debt stacks and the strategic management of distressed assets. To address these evolving dynamics, the CREFC High Yield, Distressed Assets & Servicing Conference will convene on March 10th at the New York Athletic Club.

This year’s program, developed by our planning committee, moves beyond broad market sentiment to focus on the technical execution required for today’s environment.

Inside the 2026 Program

The sessions are designed to provide members with a comprehensive look at both opportunistic lending and the operational realities of servicing complex portfolios:

• The Private Credit Playbook: The session will analyze private credit's performance history compared to other asset classes, examining how commercial real estate lending differs from corporate credit risk as the sector takes on a more prominent role in the capital stack. 
• NYC’s Multifamily & Office Bifurcation: This session promises a deep dive into the Tri-State area, specifically debating the "Multifamily Squeeze" and examining which office assets are viable for institutional repositioning versus those facing long-term distress.
• Beyond the Box - Servicing: Modern portfolios increasingly include Data Centers and Life Sciences. Leaders from Fitch Ratings, Midland Loan Services, and KeyBank will discuss the specific servicing challenges and valuation nuances of these non-traditional and developing asset classes.
• One-on-One with Brian Steinwurtzel: A highlight of the afternoon will be a candid conversation with the Co-CEO of GFP. This session will move past the headlines on office-to-residential conversions to discuss the actual regulatory frameworks and building characteristics that are driving successful institutional outcomes today.

Networking & Collaboration

The conference concludes with a Networking Reception, providing a forum for members to network with leadership from several private lenders and large servicers.

Event Details:

• Date: Tuesday, March 10, 2026
• Location: New York Athletic Club, NYC
• Full Agenda & Registration: Visit the CREFC Event Page

We look forward to seeing our members in New York for what promises to be a pivotal and timely discussion on the future of high-yield CRE finance and servicing.

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Prudential Regulator Hearing Highlights Capital and Liquidity Reforms

March 3, 2026 

Senior U.S. bank regulators appeared before the Senate Banking Committee last week, where they covered a wide range of topics. They noted specifically that the post-2008 regulatory architecture is being rebuilt from the bottom up, starting with capital and liquidity rules that they believe have become too blunt, too rigid, and too divorced from actual risk.

Witnesses included: 

• Michelle Bowman, Federal Reserve Vice-Chair of Supervision
• Travis Hill, Chair of the Federal Deposit Insurance Corp (FDIC)
• Jonathan Gould, Comptroller of Currency, Office of the Comptroller of the Currency (OCC) 
• Kyle Hauptman, Chair, National Credit Union Administration (NCUA)

Role of the Basel Committee: In response to Sen. Bill Hagerty’s (R-TN) question about whether the Basel Committee adequately represents U.S. interests, Bowman said Basel "has outlived its original intent." She pointed to "growing governance concerns in the last several years, including reduced rotation of leadership" as a specific problem.

Capital Update: Bowman confirmed that the banking agencies "have been able to arrive at a consensus" and that the proposal would be issued before the end of March. She highlighted the following: 

• Mortgage risk weights: The Fed is "considering approaches to differentiate mortgage risk that will benefit the entire banking system." When asked what’s driving banks out of mortgage origination and servicing, Bowman pointed to Basel risk weightings as "a primary driver."
• Mortgage Servicing Rights: In response to a question about the impact of capital rules on the ability of smaller institutions to retain servicing, FDIC Chairman Hill acknowledged the importance of ensuring banks can provide these services to their customers. He referred to it "a major factor" under active review.
• Leverage ratios: Bowman confirmed the Fed is open to adjustments to the Tier-1 Leverage Ratio. The enhanced supplementary leverage ratio (eSLR) for G-SIBs has been finalized already to ensure it functions as a backstop to risk-based requirements, not a binding constraint.

Liquidity Update: Bowman said that liquidity requirements have become "overly prescriptive and rigid" and that meaningful liquidity reform is on the way as an interagency effort. The use of the Fed’s discount window will be a key element of the reform. 

As covered in previous CREFC Policy and Capital Markets Briefings, CREFC has formed a working group to comment on the forthcoming capital proposal. 

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

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Anti-SFR Update: SOTU Shoutout and Senate Action

March 3, 2026

Updated legislative text banning institutional investors from single-family rental was introduced in the Senate yesterday with the title Homes Are For People, Not Corporations Act. Click here for the bill text, which is section 901 on pages 283-301.

• The effort stems from the White House’s to push for legislation that would ban large institutional investors from purchasing single-family homes to make available for rent (SFR). 
• Click here for our previous coverage on the developments.

Why it matters: The bill is part of the larger bipartisan Senate housing package. 

• As drafted, it would define large institutional investors as those owning 350 or more single family homes not exempted by the bill. 
• A single-family home is defined as “means a structure that contains 2 or 4 fewer dwelling units that are each intended for 5 residential occupancy by a single household” and not a manufactured home. There are no references to tax parcels in the definition. 
• The bill appears to include some language to exempt current SFR portfolios and certain built-to-rent (BTR) properties, among others.

Potential concerns for CREFC members include:

• The novel definition of single-family home, which may implicate certain multifamily properties that are a single tax parcel with multiple detached rental units.
• The BTR exemption may require the investor to sell the home within 7 years of acquiring it. 
• Regulatory burdens could be significant in complying with the numerous exemptions, timelines, and qualifications for certain properties.

Go deeper: Below is a quick analysis of key provisions in the bill. 

• Prohibition: Any entity controlling 350 or more single-family homes (a "large institutional investor") is banned from purchasing additional single-family homes, with limited exceptions.
• Exceptions: Allowed purchases include newly constructed or renovated homes for rent, build-to-rent or renovate-to-rent programs, homeownership assistance programs, foreclosure-related acquisitions, purchases from other large investors, and senior (55+) communities.
• Disposal requirement: Homes acquired under certain excepted categories (including BTR) must be sold to individual homebuyers within 7 years of purchase. Current renters get right of first refusal and a 30-day "first look" period before the home is listed broadly.
• Penalties: Violations carry civil penalties of up to $1 million per violation or 3x the purchase price, whichever is greater. Penalty revenue is directed to HUD's HOME Investment Partnerships program to fund construction, acquisition, and first-time homebuyer grants (down payments, closing costs, and rate buydowns).
• Oversight & Studies: GAO and HUD are each required to submit reports 2 and 10 years after the law takes effect, assessing its impact on housing availability, affordability, and institutional investor behavior.
• Congressional Intent: The bill expresses that the goal is to expand the supply of single-family homes available for individual purchase — not to punish investors outright, but to redirect the market toward owner-occupants.
• Effective Date: The prohibition on large institutional investors buying single-family homes takes effect 180 days after enactment, and the entire provision automatically expires 15 years after that effective date.

What they’re saying: In his State of the Union address, President Trump specifically highlighted his effort to ban large investors from owning single-family rentals. 

What’s next: CREFC is working with members to provide feedback to lawmakers on this fast-moving issue. 

• The Senate voted 84-6 to begin considering the entire bill, and will likely vote on additional provisions this week. 
• It is unclear if the House will accept what the Senate sends over, but the White House issued a statement saying they supported the new text.

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

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