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Petition for Rulemaking for SEC Rule 17g-5

November 18, 2025

Last week, CREFC submitted to the Securities and Exchange Commission (SEC) a Petition for Rulemaking regarding Rule 17g-5.

Dig deeper. The Credit Rating Agency Reform Act of 2006, aimed at ushering in greater credit rating transparency and heightened competition, produced new regulations including Rule 17g-5, which prohibits certain conflicts of interest for Nationally Recognized Statistical Rating Organizations (NRSROs).

• After the Financial Crisis, Rule 17g-5 was amended to include ABS-specific requirements mandating that issuers post information shared with any hired NRSRO on websites accessible by all NRSROs, with the goal of encouraging competing unsolicited ratings. 
• However, no unsolicited ratings have been issued on any transaction since implementation of the rule.
• Instead, these website posting requirements have created significant burdens, including reduced transparency due to restrictions on oral communications and legal uncertainty over timing requirements.

CREFC, along with SIFMA and MBA, submitted a Petition for Rulemaking requesting the removal of these posting requirements. Other Rule 17g-5 conflict-of-interest measures would remain in place, including:

• SEC certification of NRSROs;
• Separation of the production of credit ratings from sales and marketing activities; and
• Publication of detailed performance data regarding past credit ratings.

CREFC has also shared these concerns with SEC leadership and staff in meetings over the past several months.

• We will update membership with any developments related to Rule 17g-5, including the potential issuance of a proposed rulemaking.

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

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Government Shutdown Ends: January 30 Looms as Next Deadline

November 18, 2025 

After 43 days, the federal government reopened November 12, ending the longest shutdown in U.S. history. 

The deal funds most agencies via a continuing resolution through January 30, 2026 and provides full-year funding for the Department of Agriculture, the Veterans Administration, military construction, and the legislative branch. 

• It guarantees back pay for federal workers and reverses layoffs imposed during the shutdown.
• The National Flood Insurance Program, which had lapsed along with the government funding, was also extended.

What it doesn’t do: The policy fight that triggered the stalemate remains unresolved.

• The Affordable Care Act (ACA) marketplace subsidies expire at the end of this year and many enrollees are likely to see premium increases. 
• Senate Democrats secured a commitment from Majority Leader John Thune (R-SD) to vote on the issue in December, but that vote will likely fall short of the 60 vote threshold to advance the issue. It’s not even clear if a clean extension will garner a simple majority. 
• However, the shutdown has brought this issue front and center and is likely to have an effect on midterm campaigning for both parties in 2026.

The government is funded through January, 30, 2026, but Congress will need to fund the remainder of the agencies by then or pass another CR to keep it open. There is concern that another partial shutdown could happen unless the parties make progress on healthcare issues. 

By the numbers: Seven Democratic senators and one independent who caucuses with Democrats voted on November 10 with Republicans to re-open the government, with the bill passing by a vote of 60-40. The move has drawn sharp rebuke from some wings of the Democratic party.

• Two of the Democrats, Dick Durbin (D-IL) and Jeanne Shaheen (D-NH) are retiring from Congress. The rest are not up for re-election until 2028 or beyond: John Fetterman (D-PA); Catherine Cortez Masto (D-NV); Maggie Hassan (D-NH); Tim Kaine (D-VA); Jacky Rosen (D-NV); and Angus King (I-ME).
• The lone Republican exception was Sen. Rand Paul (R-KY).

In the House, six Democrats voted with all but two Republicans to re-open the government on November 12. Only one of these members, Rep. Jared Golden (D-ME-2), has announced his retirement. 

• The remaining Democrats were Rep. Marie Gluesenkamp Perez (D-WA-3); Rep. Henry Cuellar (D-TX-28); Rep. Adam Gray (D-CA-13); Rep. Don Davis (D-NC-1); and Rep. Tom Suozzi (D-NY-3).
• On the GOP side, Reps. Thomas Massie (R-KY-4) and Greg Steube (R-FL-17) joined with the rest of the Democrats and voted against re-opening the government.

Why it matters: Although the House Democrats who crossed the aisle are from swing or moderate districts, they will have to defend this vote to the Democratic base and potential primary challenges. However, some could also use the vote to their advantage, framing it as evidence of effective governance or alignment with key voter priorities, depending on the district’s political landscape.

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CFPB Reproposes Lending Data Collection Rule (Sec. 1071)

November 18, 2025

On November 12, the Consumer Financial Protection Bureau (CFPB) reproposed its small business finance reporting requirements (aka Section 1071). Comments are due 30 days after publication in the Federal Register.

Why it matters: The 1071 reporting requirements are intended to collect data on loan applications and originations made to small businesses. The CFPB did not exempt CRE mortgages from the final rule issued in 2023. 

• CREFC advocated with other trades to exempt CRE and multifamily from 1071 reporting. Click here for the joint trade letter and click here for CREFC’s high-level letter.
• The rule originally included commercial mortgages made to small businesses with under $5 million in revenue.
• It largely exempted multifamily loans, which are reported separately under the Home Mortgage Disclosure Act (HMDA), but did not exempt loans secured by commercial real estate made to a small business.

The Re-proposal makes several helpful changes for CRE lenders, but falls short of exempting commercial mortgages and similar credit from data collection.

• It extends compliance until January 2028 and eliminates all discretionary data points. As reported by the American Banker, although the Dodd-Frank Act outlined 13 mandatory data points, the original rule included 81 mandatory data fields, “an expansion that lenders objected to as onerous and unnecessary.”
• The small business revenue threshold would be reduced from $5 million in gross annual revenue to $1 million.
  • Affiliate revenue would still count in determining whether the borrower is a small business. If the legal borrower is a special purpose entity, its associated sponsor's or affiliate’s revenue could prevent it from being considered a small business. 
• The definition of covered financial institution would reflect an increase in origination threshold from 100 loans to 1,000 loans in each of the preceding two years.
• As noted above, multifamily loans continue to be excluded from 1071 reporting since they are covered under the HMDA reporting.

Next Step: CREFC will set up a call for interested parties to discuss potential comments.

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Congressional Hearings and Legislation Outlook

November 18, 2025

With the federal government back open, several House Financial Services Committee hearings that were postponed in recent weeks are now likely to be rescheduled. While new dates have not yet been announced, previously delayed sessions should begin to re-populate the calendar as committees work to clear accumulated backlogs.

Below is a recap of the hearings that were scheduled to take place during the government shutdown and are awaiting new dates. 

The first rescheduled hearing will be today and will focus on the Federal Deposit Insurance Corp (FDIC), while the rest have yet to be given new dates. They include:

• November 18 at 10:00 AM ET- The Future of Deposit Insurance: Exploring the Coverage, Costs, and Depositor Confidence
• Oversight of Prudential Regulators
  
• Expanding Retirement Choices: Bringing Private Markets to Main Street Savers
  
• Examining Primary Dealers and Balance Sheet Constraints
  
• Evaluating the Operations of the Committee on Foreign Investment in the United States (CFIUS)
  
• Building Capacity: Reducing Government Roadblocks to Housing Supply
  
• From Principles to Policy: Enabling 21st Century AI Innovation in Financial Services

As Congress resumes its legislative schedule, CREFC will track the hearings schedule and provide updates on any shifts in scope, witness lists, or committee priorities. It’s unclear if all of these hearings will be rescheduled at this time. 

Congress will also turn its focus to working on legislation that was stalled due to the shutdown, and one piece of legislation sure to make headlines is the Road to Housing Act.

This legislation seeks to address housing supply constraints and streamline new development. The proposal focuses on easing zoning restrictions, accelerating permitting, and increasing incentives for new and preserved housing production.

• The legislation unanimously passed out of the Senate Committee on Banking, Housing, and Urban Affairs on July 29, 2025 by a 24–0 vote. 
• On October 9, 2025, the full Senate passed the Act (as part of the amendment to the National Defense Authorization Act for Fiscal Year 2026) in a bipartisan vote (77–20). 
• The House Financial Services Committee has yet to weigh in on it, and the committee is expected to add its own mark to the legislation.
• The full House will have to act on the bill before it reaches the President’s desk. Many expect that the Road to Housing Act will not be included in the House version of the NDAA or will be significantly altered with House priorities. 
• As Congress moves forward, CREFC will track the progress of the Road to Housing Act and report any changes in its scope, timeline, or legislative priorities.
  

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Forum Spotlight: Alternative Lenders and High Yield Investors

November 10, 2025 

Samantha Rotchford (Chair), Rachel Hunter-Goldman (Chair-Elect), and Samir Tejpaul (Past Chair), form the Leadership Working Group for CREFC’s Alternative Lenders and High Yield Investors Forum. They are supported by Iman Tajadod, the Young Professionals (YP) Representative for the Forum. 

This working group sets agendas and priorities for the Forum, as well as represents their constituencies on CREFC’s Policy Committee.

Why it matters: Each industry Forum addresses issues critical to their business sector and works to achieve solutions that serve a common purpose. 

CREFC works closely with Forum leaders and members to:

• Ensure all voices are heard,
  
• Assist in finding consensus amidst disparate and converging views,
• Share those views when appropriate with regulators and legislators, utilizing CREFC’s experienced Government Relations Team and our CEO Lisa Pendergast, and 
• Develop new best practices and monitor old ones.

What they’re saying: Volumes are approaching 2021 levels in the second half of 2025

While there was a temporary slow-down in the market in April/May given market uncertainty, investors seem to try to be making up for lost time to meet budgets. 

• There is a noticeable increase in the volume of acquisition activity compared to previous years (which were almost exclusively refis)
• Banks have re-entered the direct lending space with high conviction, aggressive pricing, and lighter structure. However, they maintain a bias and offer more attractive financing for indirect lending (via repo, warehouse, or note-on-note structures) rather than direct lending, which continues to support levered lenders such as debt funds. 

Coupon compression continues and is accelerating… 

• Term SOFR is lower by ~40-bps since January and is expected to decrease another 100-bps as the Fed continues to cut rates.
• Spreads have tightened significantly since the summer, partly driven by the re-entry of banks.
• The market continues to see a number of historically equity investors launch debt products to gain access to the credit opportunities.

Diverging asset classes

• Multifamily and residential asset classes (seniors /student) continue to enjoy tight bid, while industrial momentum has slowed. 
• Data centers with signed hyperscale leases are receiving A+ pricing, while spec deals or those leased to non-IG tenants see a significant pricing gap.
• Liquidity is slowly increasing for cash-flowing office transactions, albeit from a very low base.
• Grocery-anchored retail product is becoming an industry darling.

What’s Next?

• Forum leaders will present an update on their Forum at the CREFC Miami 2026 Conference.
• Planning is in full swing for CREFC’s High Yield, Distressed Assets & Servicing Conference on March 10, 2026, in New York City.
• Soon after, the chairs will seek nominations for the next Chair-Elect to join their leadership slate.

To join the Alternative Lenders and High Yield Investors Forum, please register here.

Contact Rohit Narayanan at (RNarayanan@crefc.org) for Forum-related questions.

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CREFC Fly-In Recap: CRE in the Spotlight 

On November 5, CREFC members and staff took to Capitol Hill to update lawmakers on the CRE and multifamily finance markets, as well as issues important to the industry. 

Why it matters: CREFC’s annual fly-in to D.C. offers as way for Congress to connect directly with CRE finance professionals. Members of Congress and their staff value the market updates and interaction with business leaders. 

• Despite the ongoing government shutdown, offices were open and taking meetings. 
• Thank you to the CREFC members who braved the uncertainty of the shutdown to deliver an impactful day.

What they’re saying: CREFC staff coordinates closely with fly-in member participants to provide briefing materials on policy issues and discussion topics. In particular, the day-to-day market insights from CREFC members reinforce our standing with offices as a trusted source of information on CRE and multifamily assets and the finance markets.

Key policy topics covered during the day included: 

• Basel Bank Capital Re-proposal: CREFC is watching this closely, and staff seemed to think a re-proposal is expected late this year or Q1 2026.
• Securitization Reforms: CREFC updated offices on its ongoing efforts to streamline regulations around unnecessary and burdensome requirements that depress conduit CMBS offerings. 
• Housing Issues: CREFC expressed support for ongoing federal efforts to reduce regulatory burdens and for programs to increase housing supply. Staff indicated the House is likely to begin serious consideration of the Senate ROAD to Housing bill when Congress returns. 
• Terrorism Risk Insurance Act (TRIA) Reauthorization: CREFC and other real estate groups are urging a clean, long-term reauthorization on TRIA. The law will expire at year-end 2027. 
• Other issues included state efforts to limit foreign investment in real estate, CFPB regulation on the Home Mortgage Disclosure Act (HMDA) and small business lending, and insurance affordability and availability.

By the numbers: CREFC members met with Republicans and Democrats in House and Senate offices. CREFC members broke into small groups to cover meetings throughout the day, with each group having four to five meetings. 

Offices visited included:

• Rep. Joyce Beatty (OH-3); Rep. Mike Carey (OH-15); Sen. Kevin Cramer (ND); Sen. Steve Daines (MT-Sen); Rep. Monica De La Cruz (TX-15); Rep. Troy Downing (MT-2); Majority Whip Tom Emmer (MN-6); Rep. Scott Fitzgerald (WI-5); Rep. Mike Flood (NE-1); Rep. Vicente Gonzalez (TX-34); Rep. Sam Liccardo (CA-16); Rep. Barry Loudermilk (GA-11); Rep. Stephen Lynch (MA-8); Sen. Mike Rounds (SD); Majority Leader Steve Scalise (LA-1); Sen. Tina Smith (MN); Rep. Bryan Steil (WI-1); Sen. Thom Tillis (NC); Rep. William Timmons (SC-4); Rep. Ritchie Torres (NY-15); and Sen. Raphael Warnock (GA-Sen).
• Committee staff from the House Financial Services Committee and Senate Banking Committee.
  

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