CREFC Government Relations: Shaping Our Industry

CREFC’s Government Relations team serves as the primary interface between the CRE Finance industry and policymakers. Through a collaborative process with our members, CREFC engages with legislators, regulators, and other policy stakeholders to advocate for policies that promote the interests of our membership and the broader industry.

By joining a CREFC Forum, members are able to participate in the creation of official policy positions and will gain access to regular updates from our Government Relations team on the latest regulatory developments.

View our recent policy wins and sign up for a CREFC Forum below to join our advocacy efforts and make a difference in the direction of our industry. Please contact David McCarthy with any questions.

Recent Policy Wins (as of Q2 2024)

Conflicts of Interest Rule
Successfully advocated for narrowing the overly broad scope of the SEC’s Conflicts of Interest in Securitizations rule to target conflicted transactions and relevant parties more appropriately.

144A Bond Data Protection
Successfully exempted 144A bonds from a policy change that could have required public disclosure of borrower information already available to 144A investors.

Basel Endgame Advocacy
Submitted comments and coordinated a real estate industry letter on proposed rules that would raise capital charges on banks with >$100 billion in assets. While the rule is still forthcoming, regulators have telegraphed that the proposal will have significant changes.

Latest News

News

Powell and Yellen Hearing Recaps 

July 16, 2024

Last week, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee (HFSC) and the Senate Banking Committee (SBC) to deliver the Semiannual Monetary Policy Report. Treasury Secretary Janet Yellen separately testified before the HFSC.

Why it matters: Monetary policy and the Basel Capital proposal (covered above) were key topics in the Powell hearings while Yellen’s discussion focused on a variety of policy issues, including beneficial ownership reporting.

CRE Mentions: Commercial real estate was not a key focus of the hearings, but the issue came up several times.

Sen. Tina Smith (D-MN) and Rep. Brittney Pettersen (D-CO) touched on the risks posed by commercial real estate with Powell, focusing specifically on the effect it could have on smaller banks. Powell emphasized the issue does not appear to be systemic and that examiners and banks are working through the issues:

“We know from the stress tests and from our own work that the large banks, they're going to be okay, here. Some of the regional banks and smaller banks have what you would expect, which is high concentrations in their local community in real estate. We are aware of those [and] the banks are aware of it.” -Fed Chair Powell

Chinese Land Investments. Both Republicans and Democrats including Reps. Lucas (R-OK), Zach Nunn (R-IA), and Ralph Norman (R-SC) expressed concern that China continues to buy up land in the vicinity of U.S. military bases.

  • However, Rep. David Scott (D-GA) and other Members praised the Biden administration for adding 50 new facilities (see story below) to the list where surrounding property transactions may be reviewed by the Committee on Foreign Investment in the U.S. (CFIUS).
  • Secretary Yellen stated that Treasury is working very closely with the U.S. Department of Defense to add those 50 new facilities and the DoD just issued rulemaking after undertaking a comprehensive assessment of military installations across the country.

Beneficial Ownership. Members on both sides of the aisle, including Chairman Patrick McHenry, Rep. Norman (R-SC), Rep. Nydia Velazquez (D-NY), Rep. Joyce Beatty (D-OH), and Rep. Nunn (R-IA) expressed their concern that small businesses across the United States are unaware of the new beneficial ownership requirement.

  • Republicans took it a step further to request that FinCEN extend the deadline for small businesses to come into compliance with the beneficial ownership rule.
  • Yellen said the Biden administration is conducting extensive outreach and education to ensure small businesses are aware they need to come into compliance with the new rule. Secretary Yellen added that Treasury has been able to reach 2.7 of 3.1 million small businesses.
Please 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
Dollar bill with a microphone in front of George Washington
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. © 2024 CRE Finance Council. All rights reserved.
Powell and Yellen Hearing Recaps
July 16, 2024
Last week, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee (HFSC) and the Senate Banking Committee (SBC).

News

CFIUS Proposes Expanding List of Military Bases

July 16, 2024

Last week, Treasury announced a proposal to expand the Committee on Foreign Investment in the United States’ (CFIUS) scope over real estate located near sensitive government facilities.

Why it matters: Federal and state lawmakers have been increasingly concerned about foreign adversary ownership interest in real estate.

  • In 2018, Congress expanded CFIUS’s authority to review certain real estate transactions near sensitive national security sites involving foreign persons.
  • For the first time ever, CFIUS ordered divestment of real estate when it disapproved of a Chinese-owned bitcoin mining facility near an Air Force base in Wyoming.
  • This proposed rule would add over 50 military installations across 30 states to the existing list of installations around which CFIUS has jurisdiction, including over land purchases. This latest update would vastly expand the reach of CFIUS’s real estate jurisdiction while maintaining its sharp focus on national security.

The proposed rule would enhance CFIUS’s authorities through the following key changes:

  • Expand CFIUS’s jurisdiction over real estate transactions to include those within a one-mile radius around 40 additional military installations;
  • Expand CFIUS’s jurisdiction over real estate transactions to include those within a 100-mile radius around 19 additional military installations;
  • Expand CFIUS’s jurisdiction over real estate transactions between 1 mile and 100 miles around eight military installations already listed in the regulations;
  • Update the names of 14 military installations already listed in the regulations to better assist the public in identifying the relevant sites; and
  • Update the location of seven military installations already listed in the current regulations to better assist the public in identifying the relevant sites.

The bottom line: CFIUS regulations have numerous exceptions, including largely exempting mortgage lending by foreign persons from coverage.

Please 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. © 2024 CRE Finance Council. All rights reserved.
CFIUS Proposes Expanding List of Military Bases
July 16, 2024
Last week, Treasury announced a proposal to expand the Committee on Foreign Investment in the United States.

News

Trump Picks Vance as VP Nominee

July 16, 2024

Yesterday, former President Donald Trump announced his selection of U.S. Senator J.D. Vance from Ohio as his running mate.

  • Vance was elected to the Senate in 2022 and has a background as a venture capitalist, lawyer, and author.
  • Vance obtained Trump’s pivotal endorsement in the 2022 Ohio GOP Senate primary, which helped propel him to victory in the three-way race. Vance prevailed against former Rep. Tim Ryan (D-OH) in the general election.

Why it matters: The pick doubles down on appealing to rural Americans for the Trump campaign. Vance has positioned himself as a populist, trade-skeptic, and favors a more isolationist foreign policy.

What they’re saying: PoliticoPro published an article (paywall) analyzing “What VP Vance would mean for Wall Street.” The article includes interviews and quotes that paint Vance as a “populist conservative” willing to take on big business. For financial services, highlights include:

  • Opposition to the Basel endgame capital requirements;
  • Co-sponsor on a bill to limit credit card interchange fees;
  • Co-sponsor on post-Silicon Valley Bank legislation to penalize bank executives in the wake of failures (though there is broad support among GOP senators on the Banking Committee for this bill); and
  • Co-sponsor on a bill to prevent banks from limiting services to particular industries, including energy producers and firearms businesses.

The article quoted Vance during a Senate Banking Committee hearing with large bank CEOs:

“If you guys are going to use the financial power that you’ve accumulated to go to war against the values of our voters, impoverish our constituents who rely on cheap energy, and destroy the jobs of people who work in the energy sector, why should [Republicans] listen to you when you come and ask us for a tax break or for reasonable regulations?”

The bottom line: The vice presidency is a notoriously tricky role, and Trump remains at the top of the ticket. But Vance’s own policy views likely align with many of Trump’s key priorities.

Contact David McCarthy (dmccarthy@crefc.org) with 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. © 2024 CRE Finance Council. All rights reserved.
Trump Picks Vance as VP Nominee
July 16, 2024
Yesterday, former President Donald Trump announced his selection of U.S. Senator J.D. Vance from Ohio as his running mate.

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