News Archive

News

Introducing Spotlight on Servicing: Understanding CMBS Appraisal Reductions

May 8, 2026

CREFC is pleased to share the release of Understanding CMBS Appraisal Reductions, the first report in a new Spotlight on Servicing educational series focused on the servicing business. 
 
Appraisal reductions play a critical role in CMBS servicing, influencing cash flow, bond performance, and investor control. This report explains how they work, including key trigger events, a typical Appraisal Reduction Amount (ARA) calculation, and the impact on bondholder payments and ratings. The report provides a clear introduction to how appraisal reductions function in CMBS. 

Download

The next edition in the series will look at hot topics in servicing, including a preview of servicing topics to be covered at CREFC’s Annual Conference in June. Spotlight on Servicing reports can be found in the CREFC Resource Center or Member Alert archives.

For questions or additional information:

Rich Carlson
Senior Director, Servicing Liaison
CRE Finance Council
rcarlson@crefc.org

Contact 

Rich Carlson
Senior Director, Servicing Liaison
CRE Finance Council
rcarlson@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. © 2026 CRE Finance Council. All rights reserved.
Introducing Spotlight on Servicing: Understanding CMBS Appraisal Reductions
May 08, 2026
CREFC is pleased to share the release of Understanding CMBS Appraisal Reductions, the first report in a new Spotlight on Servicing educational series focused on the servicing business.

News

CFPB Finalizes 1071 Rulemaking

May 5, 2026

Last week, the Consumer Financial Protection Bureau (CFPB) released the final 1071 rule that significantly improves lender requirements by:

  1. Lowering the revenue threshold for a covered small business from $5 million to $1 million;
  2. Raising the loan-volume threshold for reporting from 100 to 1,000 covered loans; and
  3. Narrowing the data points and lending products subject to collection requirements.
Although regulators did not exempt CRE finance from the requirements, they stated the new parameters addressed industry concerns. 

  • The compliance date is January 1, 2028.

1071 History

Dodd-Frank Section 1071 requires regulators to collect data from banks and credit unions on lending to small businesses, women-owned businesses, and minority-owned businesses. 

A 2023 Biden-era “final” rule raised the threshold for what constituted a small business from $1 million in revenue to $5 million and added several required data points, including demographic data. 

  • It largely exempted multifamily loans, which are reported separately under the Home Mortgage Disclosure Act (HMDA).
  • However, it did not exempt loans secured by commercial real estate made to small businesses.

The Trump administration issued a re-proposal in 2025, which proposed the above helpful changes for lenders, yet still fell short of exempting commercial mortgages from data collection. 

In December, CREFC submitted a response to the re-proposal and signed onto a joint trade letter

We explained that, as reflected in both the federal regulatory framework and industry practice, CRE finance is fundamentally different from small-business lending. 

  • Credit secured by non-owner-occupied commercial real estate should be exempt from 1071. Loans are underwritten based on the property’s cash flow and collateral value rather than the operating revenues of a business.

The Final 1071 Rule

The rule maintains the proposed changes in revenue threshold and number of loans made as described above. Although the rule does not exempt CRE finance, the regulators stated that a “categorical exclusion is unnecessary” given the new thresholds and role of affiliates:

Setting the gross annual revenue threshold at $1 million rather than $5 million, will likely exclude many of the transactions cited by commenters. Further, because [we allow] financial institutions to include the revenue of an applicant’s affiliates when determining whether an applicant is a small business, single-purpose entities—such as those common in commercial real estate—are permitted to have their revenue aggregated with that of their parent or affiliates for purposes of determining whether they are a small business under this rule. 

CREFC will work with members to understand any concerns or issues that arise during rule implementation and follow up with the CFPB accordingly. 

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

Contact  

Sairah Burki
Managing Director,
Head of Regulatory Affairs
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. © 2026 CRE Finance Council. All rights reserved.
CFPB Finalizes 1071 Rulemaking
May 05, 2026
Last week, the Consumer Financial Protection Bureau (CFPB) released the final 1071 rule that significantly improves lender requirements by:

News

CREFC Balance-Sheet Lending Leaders Convene for Strategic Roundtable Dinner

May 5, 2026

Last week, CREFC President & CEO Lisa Pendergast hosted an exclusive roundtable dinner, bringing together key members of the Portfolio Lenders Forum (Bank and Insurance) and the Alternative Lenders & High Yield Investors Forum. The evening featured special guest Leland F. Bunch, CREFC Chair and Managing Director at Bank of America, alongside a distinguished group of leaders from the balance sheet lending community.

Participating firms included senior representatives from BGO, Blackstone, Bridge Debt Strategies, Derby Lane Partners, KKR, PGIM, Regions Bank, and US Bank. The intimate setting provided a unique venue for these industry leaders to engage in a candid dialogue regarding current market developments and to offer strategic suggestions on how CREFC can further support the sector.

Key Discussion Highlights:

  • The Divergence of Private Credit Performance: The group examined the growing performance gap between unsecured Private Credit, which has faced increasing headwinds, and secured real estate debt funds. Participants noted that real estate debt funds have emerged as beneficiaries of this market divergence, providing strong value propositions in the current environment.
  • Benchmarking and Data Development: A critical point of discussion centered on the need for improved transparency and data in the private secured debt space. Executives explored the potential for developing a dedicated index to provide accurate performance benchmarking for the sector.
  • Market Trends, Competition, and Credit: Leaders shared observations on trends in the market: while overall deal volumes are down, competition among balance-sheet lenders remains fierce. Members reported that while spreads have tightened to secure quality transactions, they have successfully maintained rigorous credit standards, prioritizing portfolio resilience over volume.

Engage with CREFC Forums

CREFC’s Forums offer a dedicated space for members to share insights, develop industry best practices, and influence policy. We encourage all members to engage actively with their relevant forums to help shape CREFC’s policy and capital markets initiatives.

Contact  

Rohit Narayanan
Managing Director,
Industry Initiatives
646.884.7569
rnarayanan@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. © 2026 CRE Finance Council. All rights reserved.
CREFC Balance-Sheet Lending Leaders Convene for Strategic Roundtable Dinner
May 05, 2026
Last week, CREFC President & CEO Lisa Pendergast hosted an exclusive roundtable dinner, bringing together key members of the Portfolio Lenders Forum (Bank and Insurance) and the Alternative Lenders & High Yield Investors Forum.

News

Supreme Court Decision Could Spur More House Map Changes

May 5, 2026

The U.S. Supreme Court issued its opinion in Louisiana v. Callais last week and held that Louisiana’s congressional district map created an “unconstitutional racial gerrymander.” 

Why it matters: The decision calls into question a number of congressional districts that had been designed to comply with Section 2 of the federal Voting Rights Act of 1965. The provision has been interpreted to support racial minority-majority congressional districts as a practice to guard against vote dilution through gerrymanders, often in southern states. 

Go deeper: The decision has set off a flurry of redistricting talk in states with minority-majority districts. While state law and political dynamics may prevent redistricting this cycle, legislatures might act before 2028. 

  • Louisiana: The state has suspended its May 16 House primary and will attempt to flip one of the two Democratic held seats. 
  • Alabama: The Governor called a special session to eliminate one of the two Democratic seats. 
  • Tennessee: Although state law prohibits midcycle redistricting, the Governor called a special session to try and eliminate the single Democratic seat. 
  • South Carolina: The Governor has not yet called for action to eliminate the lone Democratic seat. 

Yes, but: Some Democrats have started to threaten revision in deep blue states, including California and Illinois, to break up minority-majority districts and eliminate most, if not all, GOP-held seats. 

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. © 2026 CRE Finance Council. All rights reserved.
Supreme Court Decision Could Spur More House Map Changes
May 05, 2026
The U.S. Supreme Court issued its opinion in Louisiana v. Callais last week and held that Louisiana’s congressional district map created an “unconstitutional racial gerrymander.”

News

CRE/CLO Update

May 5, 2026

Progress on CREFC’s Collateral Manager Data Report (CMDR) and Upcoming June Meeting

CREFC continues to spearhead efforts to enhance transparency and standardization across the CRE CLO landscape. As we approach the mid-year mark, significant strides have been made in the adoption of the Collateral Manager Data Report (CMDR), alongside new opportunities for industry-wide collaboration.

Save the Date: CRE CLO / IRP Joint Meeting

The upcoming CREFC Annual Conference will feature a dedicated in-person joint lunch meeting of the CRE CLO Working Group and the Investor Reporting Package (IRP) Committee. This session is geared for participants to provide comments and suggestions on CRE CLO and IRP reporting.

  • When: Monday, June 8, 2026 | 12:30 PM – 1:30 PM
  • Registration: Register Here
  • Note: Registration for the full CREFC Annual Conference is not required to participate in this specific meeting.

Collateral Manager Data Report (CMDR) Implementation

Adoption of the CMDR is gaining significant momentum. This quarter marks a turning point as several additional firms have begun active reporting. The integration into major data platforms is also moving forward rapidly:

  • Intex: Active reporting is underway.
  • Trepp: Scheduled to begin reporting by the end of May.
  • Bloomberg: Now reviewing requirements to facilitate this reporting in the future.

Furthermore, CREFC is actively developing CMDR v2. Our goal is to circulate this updated version for review by the working group prior to the June Annual meeting, ensuring that the latest feedback from market participants is incorporated into the draft.

What's Next: Advancing CRE CLO Financials Reporting

Streamlining the reporting of financials remains the next top priority for the working group. Recent discussions with a diverse group of Issuers, Investors, and Servicers revealed a variety of perspectives on the most efficient path forward.

Given the importance of achieving a consensus that serves all market participants, we will be hosting a live discussion during the June 8th meeting at the Conference. This will be an essential opportunity to weigh different viewpoints and determine the best strategy for streamlining these critical data sets.

Get Involved 

Your feedback is vital to the success of these initiatives. For any questions or comments regarding these updates, please reach out to Rohit Narayanan at rnarayanan@CREFC.org.


Contact 

Rohit Narayanan
Managing Director,
Industry Initiatives
646.884.7569
rnarayanan@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. © 2026 CRE Finance Council. All rights reserved.
CRE/CLO Update
May 05, 2026
Progress on CREFC’s Collateral Manager Data Report (CMDR) and Upcoming June Meeting.

News

Economy, the Fed, and Rates…

May 5, 2026

Economic Data & Labor Market

  • 1Q GDP softens to 2.0%; AI capex masks consumer fade. GDP printed 2.0% q/q saar (vs 2.2% expected, up from 0.5%), with business investment at a 10.4% annualized rate – strongest in nearly three years. Equipment +17.2%, IPP +12.0%, both AI-driven. Pantheon's Allen estimated AI investment accounted for “about half” of headline growth net of imports. Consumer spending decelerated to 1.6%, but final sales to private domestic purchasers accelerated to 2.5%. AI capex is doing the lifting; the consumer is wobbling.
  • PCE inflation jumps to highest level since May 2023. March headline PCE rose to 3.5% YoY (0.7% m/m, largest since 2022); core held at 3.2% (0.3% m/m). 1Q quarterly readings hotter: headline 4.5% q/q saar, core 4.3%, well above 4Q25's 2.9%/2.7%. AAA gasoline averaged $4.30/gal, +44% since the war began. BofA expects headline to peak in 2Q at 4.1%; 4Q/4Q core at 3.2%. Real personal income ex-transfers slowed to 0.4% YoY – a recessionary reading without the corresponding rise in unemployment yet.
  • ISM Manufacturing: Prices spike to a four-year high; hiring weakens. Headline held at 52.7 (highest since 2022); prices paid surged to 84.6, the highest since April 2022's comparable oil-shock peak. Employment dropped to 46.4 (vs 48.8 expected); new orders held at 54.1. Respondents flagged stockpiling ahead of war- and tariff-driven price hikes, with supplier deliveries lengthening on Hormuz/Suez/Red Sea rerouting. The breadth of price pressure is the highest in four years.
  • Consumer cushion narrowing. Personal saving rate held at 4.0%, a historic low. Tax refunds +17% YoY (~$45B), due in part to OBBBA, but BofA estimates gasoline has eaten roughly half that windfall and pegs the full-year “gas tax” at 0.3%–0.5% of GDP. UMich sentiment final April 49.8 (record low; preliminary 47.6). April payroll forecasts cluster well below March's 178k: BE 57k, BofA 80k, Wells 70k, Deutsche 50k; unemployment seen at 4.2%–4.4%. Even the high end is a sharp step-down.
Federal Reserve Policy & the Hawkish Dissents

  • Most divided FOMC meeting since October 1992. The Fed held at 3.50%–3.75% on an 8-4 vote. Kashkari, Hammack, and Logan dissented to remove the “easing bias”; Miran dissented for a 25 bp cut. Powell described a three-stage shift in train (easing bias → neutral → hiking bias) and said the committee's center is “moving toward a more neutral place,” conceding the dissenters' case was “perfectly good.” BI's NLP model flagged Powell's opening remarks as among the most hawkish of his tenure.
  • Hawks lay out the hike trigger. Kashkari's Friday essay: a quick Hormuz reopening warrants extended pause then gradual cuts; extended closure warrants “rate increases, potentially a series of them … even at the risk of further weakness to the labor market.” Hammack and Logan made parallel cases. The trigger is unanchored long-run inflation expectations, not labor strength. BI's read: cuts aren't imminent, but if joblessness climbs (BE sees u-rate >4.5%), cuts return and the curve bull-steepens.
  • Warsh faces a harder Fed than the market wants. Powell's term as chair ends May 15; Warsh confirmation is expected the week of May 11; the next FOMC sits roughly a month later. Bloomberg's Markets Pulse (n=85): 73% say dot-plot elimination would make trading the Fed harder; median 2026 year-end 10y forecast 4.37% (range 2.35%–6.0%); 52% more concerned about Fed independence than at year-start; 65% expect at least one more meeting this year with four-plus dissents. Warsh inherits a committee where over a third of dots already see rates steady this year.

Treasury Yields & Bond Markets

  • Curve bear-flattens on the hawkish Fed signal. Per Bloomberg closes: 2y +10 bps to 3.88%, 10y +7 bps to 4.37%, 30y +5 bps to 4.96% – the largest one-week gains since the week ended March 20. 2s10s flattened ~3 bps to 49 bps. Front end leading, long end participating but lagging – markets pricing fewer cuts (and a pinch of hike risk), not a renewed term-premium spasm. SOFR options now imply no cuts until late 2027.
  • Debt-to-GDP crosses 100% for the first time since 1946. Publicly held debt hit $31.27T against $31.22T trailing GDP – 100.2% as of March 31. CBO projects 100.6% for FY26, a new postwar record by 2030, and 120% by 2036. Drivers are structural: deficits near 6% of GDP, $1.33 spent per dollar collected, one in seven federal dollars now to interest. Schrager (Bloomberg Opinion) flagged the bond-market complacency and shrinking “convenience yield” as foreign official demand fades and Europe issues more sovereign debt.
  • Forecast resets reflect the new bar for cuts. BofA pushed its 50 bp easing path to September/October “with high risk these cuts may not materialize,” and now sees 10y at 4.25% by 4Q26 and 30y at 4.75%. Deutsche sees the Fed “on hold near neutral indefinitely.” Per CME, traders see >80% probability of no cut through December. Treasury's quarterly refunding Wednesday is in focus; consensus does not expect coupon-size increases before 2027.

Dollar, Commodities & Market Dynamics

  • S&P 500 logs longest weekly rally since 2024 – but the decoupling has limits. Five consecutive weekly gains; April was the best month since 2020. ~81% of S&P 500 companies have beaten 1Q estimates. Hyperscalers (Amazon, Meta, Microsoft, Alphabet) are guiding to capex 77% above last year's record $410B – visible in Caterpillar's 10% pop on a record backlog with commitments into 2028. El-Erian's caution: a Gulf capital pullback and “valuation fatigue” set a geoeconomic ceiling – minor earnings misses or AI-rollout delays could trigger sharp repricing.
  • Crude eases on diplomacy hopes; Trump pledges Hormuz transit support. WTI fell 2.8% Friday to $102 on reports Tehran submitted a new proposal; Brent briefly touched $126 mid-week before retracing to ~$110 Monday. Trump on May 4 pledged U.S. support to help ships transit Hormuz – the first concrete move toward restoring traffic since the war began. Gold settled at $4,609. McGlone (BI) flagged the historical pump-then-dump pattern (2008, 2022). Bloomberg Dollar Spot Index little changed Friday; euro $1.17, yen 157.06.

Housing & Multifamily

  • Starts surge, permits collapse – the forward indicator is flashing. March starts +10.8% to 1.502M annualized (highest since December 2024); multifamily 5+ unit starts +13.5% YoY at 446k. But total permits fell 10.8% to 1.372M (lowest since August), multifamily permits dropped 23.5% MoM and 5.3% YoY to 427k. NAHB builder sentiment hit a seven-month low in April. Starts reflect approved projects; permits reflect builder reaction to materials costs and elevated mortgage rates. Watch whether the bifurcation resolves toward the weaker permit signal.

CRE Finance Market Implications

  • Long end stays sticky; floating-rate relief pushed out. 10y at 4.37% (6 bps off 2026 high), 30y at 4.96% (4 bps off): no near-term relief for fixed-rate permanent financing. The debt-to-GDP cross-over and shrinking convenience yield argue for continued long-end stickiness independent of the Fed. For floating-rate borrowers, BofA's reset of the cut path with explicit non-execution risk means coupon relief is later and more conditional than priced into many transitional deals struck in 1Q.
  • Construction input cost shock isn't priced into many development pro-formas. ISM prices paid at 84.6 is the highest since the comparable April 2022 oil-shock peak. Panelists flagged crude-, polyethylene-, and LNG-linked materials and 15%–25% imported component cost spikes on top of war-driven shipping disruptions. Caterpillar's order book into 2028 also reflects AI/data-center demand pulling forward equipment pricing power.
  • AI capex is both demand engine and capital competitor. Hyperscaler capex is set to rise 77% above last year's $410B, supporting data centers, power, equipment, and logistics demand. But capital markets remain heavily focused on AI-linked growth, which could leave non-AI transitional and development assets more dependent on receptive CRE credit markets.
  • Bank/NBFI plumbing is the sleeper – and a Fed governor agrees. Goldman's NBFI loan book grew to $118B at year-end 2025 from $91B; the Group of Thirty's April report flagged that NBFI exposure exceeds loss-absorbing capital at “many U.S. and some euro area banks.” Fed Governor Michael Barr warned May 4 that stress in private credit could spark “psychological contagion” leading to a broader credit crunch. For CRE, if banks tighten lending to private credit, BDCs, or other NBFI platforms, bridge and transitional CRE lenders could feel it quickly.
Sources: Bureau of Economic Analysis; Census Bureau / HUD; Institute for Supply Management; Federal Reserve; University of Michigan Surveys of Consumers; CME Group; Bloomberg; Bloomberg Economics; Bloomberg Intelligence; Bloomberg Opinion; Bloomberg Briefs; Wall Street Journal; Financial Times; New York Times; Reuters Breakingviews; BofA Securities; Deutsche Bank; Wells Fargo Economics; Pantheon Macroeconomics; CBO; Committee for a Responsible Federal Budget; Group of Thirty, via Reuters Breakingviews.

You can download CREFC's one-page MarketMetrics, which includes statistics covering the economy and the CRE debt capital markets, here.

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. © 2026 CRE Finance Council. All rights reserved.
Economy, the Fed, and Rates…
May 05, 2026
1Q GDP softens to 2.0%; AI capex masks consumer fade.

News

CRE Securitized Debt Update

May 5, 2026

Private-Label CMBS and CRE CLOs

In one of the busiest weeks in recent memory, 11 deals totaling $7.9 billion priced last week:

  1. MF1 2026-FL22, a $1.5 billion managed CRE CLO sponsored by MF1, upsized from $1.2 billion amid strong investor demand. The initial pool comprises five whole loans and 28 loan participations secured by 49 properties, almost entirely multifamily, across 17 states, with top concentrations in New York (23.2%), California (12.4%), and Florida (9.8%). On a weighted-average basis, the loans carry a SOFR + 288 bp spread, 13 months of seasoning, and 19 months of remaining term, or 47 months including extension options. The transaction includes a 30-month reinvestment period.
  2. CONE 2026-DFW3, a $1.05 billion SASB backed by a fixed-rate, five-year, interest-only loan for CyrusOne secured by two adjacent purpose-built data centers in Allen, TX, in the Dallas-Fort Worth market. The portfolio provides 76.5 MW of critical capacity across roughly 472,000 sf of gross building area, including 190,000 sf of raised-floor space, and was 99.8% leased to 35 tenants as of December 2025. The loan was underwritten to a 66.8% LTV, 9.3% NCF debt yield, and 1.36x DSCR.
  3. BX 2026-PNDA, a $1.043 billion SASB backed by a floating-rate, interest-only loan for a Blackstone and TruAmerica joint venture to refinance a San Diego-area multifamily portfolio totaling roughly 5,300 units. The portfolio was 94.1% occupied as of March 2026, and the loan was underwritten to a 69.6% LTV, 6.8% NCF debt yield, and 1.16x DSCR. The loan has a two-year initial term plus three one-year extension options.
  4. BX 2026-CLS, a $765 million SASB backed by a floating-rate, interest-only loan for Blackstone’s BioMed Realty to refinance Center for Life Science Boston, a 21-story, 704,159 sf, Class A, LEED Gold-certified trophy life-science building in Boston’s Longwood Medical Area. The property is 65% lab and 35% office space, 100% leased to seven tenants, and has a roughly nine-year WALT. Beth Israel Deaconess Medical Center and Children’s Hospital Corp. together account for more than 80% of square footage and underwritten rent. The loan has a two-year initial term plus three one-year extension options.
  5. ESTN 2026-TOWN, a $708.5 million SASB backed by a fixed-rate, 10-year, interest-only loan for Georgetown Co. and Madison International Realty on Easton Town Center, an open-air, mixed-use retail destination in Columbus, OH. The 1.6 million sf collateral comprises approximately 809,000 sf of open-air retail, 417,000 sf of enclosed retail, and 408,000 sf of Class A creative office. The property is 95.2% occupied by more than 250 tenants and recorded approximately 19.5 million visits in 2025, ranking No. 3 in foot traffic among Green Street’s top-rated retail destinations. The loan was underwritten to a 54.9% LTV, 10.4% NOI debt yield, and 1.70x NCF DSCR.
  6. JW 2026-MRCO, a $690 million SASB backed by a floating-rate, interest-only loan for Trinity Investments and Sculptor Capital Management to finance their $835 million acquisition of the 809-room JW Marriott Marco Island Beach Resort in Marco Island, FL, from Barings. The resort, appraised at $950 million, includes more than 120,000 sf of meeting and event space, 12 food-and-beverage outlets, five pools, a 24,000 sf spa, two 18-hole golf courses, and a private membership club. Based on the trailing 12 months to March 2026, the resort reported 79% occupancy, an ADR of approximately $528, and RevPAR of roughly $417. The loan has a two-year initial term plus three one-year extension options.
  7. BMARK 2026-B43, a $683.2 million conduit backed by 32 ten-year loans secured by 53 properties across 20 states, with loans contributed by Deutsche Bank, Goldman Sachs, BofA, Barclays, Citi, UBS, and BMO. Top property concentrations are retail (27%), office (22%), and multifamily (14%). The largest loan is a $67 million portion of a $165 million loan to HHH Properties Corp. on the Fair City Mall and Plaza at Landmark retail properties in Northern Virginia.
  8. ARES1 2026-TRON, a $660 million SASB backed by a floating-rate, interest-only loan for Ares Management to refinance 21 industrial properties totaling 6.45 million sf across nine states. The portfolio includes 15 single-tenant and six multi-tenant properties, with top markets in Portland, OR (16.8% of NOI), Baltimore (15.1%), Dallas (12.1%), Chicago (11.8%), and Atlanta (11.6%). The portfolio is 90.2% leased to 36 tenants with a 3.7-year WALT, led by Amazon (9.5% of base rent), Fila USA (8.3%), Navistar (7.8%), and Lam Research (7.2%). Ares acquired the properties last year as part of its broader acquisition of GCP International. Proceeds will primarily retire existing debt, fund reserves, and return roughly $16 million to Ares. The loan has a two-year initial term plus three one-year extension options.
  9. BBCMS 2026-5C41, a $533.6 million conduit backed by 33 five-year loans secured by 82 properties across 19 states, with loans contributed by Benefit Street Partners, Barclays, Zions, KeyBank, Citi, Starwood, SocGen, Wells, and UBS. Top property concentrations are multifamily (43.7%), self-storage (19.3%), office (10.8%), and hotel (10.6%). The largest loans include Admiral’s Cove, Prospect Place Apartments, The Mirage at San Marcos, an Amsdell self-storage portfolio, and Renaissance Center Park.
  10. BAMLL 2026-HRHB, a $200 million SASB backed by a fixed-rate, five-year, interest-only loan for Mayer Corp. and Hyatt Hotels to refinance the 519-room Hyatt Regency Huntington Beach Resort & Spa in Huntington Beach, CA. The full-service resort, appraised at $380.2 million, includes 20 indoor and outdoor meeting spaces, seven food-and-beverage outlets, a 20,000 sf spa, two pools, a water park, and direct beach access via a pedestrian bridge over the Pacific Coast Highway. Based on the trailing 12 months to March 2026, the hotel reported 75.4% occupancy, an ADR of approximately $362, and RevPAR of roughly $273.
  11. MSRW 2026-FAYM, a $97.5 million SASB backed by a fixed-rate, five-year loan with a 25-year amortization schedule for CBL Properties to refinance Fayette Mall in Lexington, KY, the largest mall in Kentucky. The 678,000 sf collateral component of the 1.16 million sf super-regional mall is 96.4% leased and anchored by Dick’s Sporting Goods and JCPenney. Dillard’s and Macy’s also anchor the broader mall but are separately owned and excluded from the collateral.

By the numbers: YTD 2026 private-label CMBS and CRE CLO issuance totaled $63.7 billion, up 21% from the $52.6 billion for the same period last year.

Spreads Continue to Tighten

  • Conduit AAA and A-S spreads were unchanged at +75 and +110, respectively.
  • Conduit AA spreads were tighter by 5 bps to +130 while A spreads were tighter by 15 bps to +175.
  • Conduit BBB- spreads were tighter by 25 bps to +415.
  • SASB AAA spreads were unchanged in a range of +93 to +130, depending on property type.
  • CRE CLO AAA and BBB- spreads were unchanged at +145/+150 (static/managed) and +325/+350 (static/managed), respectively.

Agency CMBS

  • Agency issuance totaled $2.1 billion, comprising a $1.3 billion Freddie K transaction, $532.9 million in Fannie DUS, and $211.1 million in Ginnie transactions.
  • Agency issuance for YTD 2026 totaled $61.2 billion, 38% higher than the $44.4 billion recorded for the same period in 2025.

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. © 2026 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
May 05, 2026
In one of the busiest weeks in recent memory, 11 deals totaling $7.9 billion priced last week.

News

Senators Introduce TRIA Legislation

May 5, 2026

A bipartisan group of senators introduced a clean, seven-year reauthorization of the Terrorism Risk Insurance Act (TRIA), a program that provides a federal backstop to losses from certain terrorist attacks. 

  • Senator Dave McCormick (R-PA) and Sen. Tina Smith (D-MN) led a bipartisan group of 24 senators on the bill. 

Why it matters: After the 9-11 attacks, the TRIA backstop has been essential in providing affordable terrorism risk insurance to commercial real estate owners/borrowers and other policyholders. Without action, the program will expire after December 31, 2027. 

  • CREFC and the Coalition to Insure Against Terrorism (CIAT) have been meeting with lawmakers and urging them to reauthorize TRIA in 2026. 
  • The original senate co-sponsors include nearly all of the Senate Banking Committee and Senate Minority Leader Chuck Schumer. 

Go deeper: The House began its push for reauthorization with a January markup of the TRIA Program Reauthorization Act of 2026 (H.R. 7128), which advanced out of committee 51-2. The House bill was largely a clean reauthorization for seven-years with two tweaks: 

  • The bill raises the program trigger threshold from $5 million in losses to $10 million by 2029, which tracks with an inflation adjustment from the original 2002 law. 
  • Treasury would have a 90-day window in which to certify a terrorist attack. Certification is necessary to trigger the backstop payments to insurers under the program. 

What’s next: The Senate will likely attach any TRIA reauthorization bill to a larger ‘must-pass’ package to advance it. The House may consider its own bill through an expedited process requiring a two-thirds majority vote, but leadership has not indicated a firm timeline. 

The bottom line: The strong, bipartisan support in both chambers makes TRIA reauthorization a strong possibility, but lawmakers must navigate the procedural hurdles to get a bill to the President’s desk. 

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. © 2026 CRE Finance Council. All rights reserved.
Senators Introduce TRIA Legislation
May 05, 2026
A bipartisan group of senators introduced a clean, seven-year reauthorization of the Terrorism Risk Insurance Act (TRIA).

News

Congressional Roundup: Shutdown Ends (Mostly)

May 5, 2026

Congress had a busy week to close out the month of April with several key pieces of legislation advancing after numerous delays. The House moved some longstanding legislation across the finish line last week before lawmakers left for a one week recess.

DHS Authorization Moves Forward: Congress funded most of the Department of Homeland Security (DHS), which had been shutdown from February 14 through April 30, they did so on a voice vote, meaning that those in favor of the bill and those opposed was not officially recorded. 

The legislation—originally passed by the Senate—funds the DHS through September 30 of this year. It covers the Coast Guard, TSA, Secret Service, FEMA and the Cybersecurity and Infrastructure Security Agency, along with other offices within DHS that don’t deal with immigration enforcement, more on that below.

  • The core issue throughout the shutdown had been whether or not to fund ICE with Democrats seeking a number of reforms to the agency.
  • The Senate's DHS funding bill had stalled in the lower chamber for more than a month. Speaker Mike Johnson (R-LA), had declined to put the bill on the floor as it didn’t fund immigration enforcement.
  • Reportedly, Johnson changed course under pressure from the White House as they noted they would not be able to pay DHS employees starting later this month if the bill was not passed.

While the shutdown is largely over, the effects will continue to be felt for weeks or months to come. Over 1,100 TSA employees have quit since the shutdown began, with most expected not to return, and many DHS initiatives had stalled.

Reconciliation 2.0: Republicans are using the reconciliation process to fund ICE and CBP for three years, which will circumvent the need for Democratic votes in the Senate. 

  • The House passed the budget resolution last week, which now unlocks the procedures to advance the effort. The Senate passed its own resolution the week prior. 
  • As a refresher, budget reconciliation is a special legislative process in the Senate that allows certain tax and spending bills to pass with a simple majority (51 votes) instead of the usual 60-vote threshold needed to overcome a filibuster. 
  • This is the same legislative maneuver that the GOP used to pass the One Big Beautiful Bill Act last summer. 
  • In hopes of expediting passage, Senate Majority Leader John Thune (R-SD) wants to keep the bill focused on immigration enforcement funding. 

What’s next: President Trump has set an aggressive timeline of June 1 to have this bill signed into law, which would mark the fastest budget reconciliation process in history. However, with competing priorities on what should be included in the bill and razor thin margins in the House, the result is far from certain. 

FISA (Foreign Intelligence Surveillance Act): Congress has spent much of the last two months grappling with reauthorizing the Foreign Intelligence Surveillance Act (FISA), which governs federal surveillance authority of non-Americans aboard. 

  • Leadership has still not been able to clench a long-term deal with FISA skeptics, thus the House by a vote of 261-111 passed a 45 day short-term extension of Section 702. The Senate passed it by unanimous consent. 
  • Lawmakers remain divided over the scope of reforms, particularly around warrant requirements for querying U.S. persons’ data but agreed, at least for now, that allowing the authority to lapse was not an option. 
  • The extension buys time for continued negotiations, though the debate exposed persistent fault lines between national security priorities and civil liberties concerns. 

The Farm Bill: The House passed the 2026 Farm Bill last week by a 224–200 bipartisan vote, marking progress after years of delays. 

  • The bill updates agricultural, conservation, and rural development programs, but it still has an uphill battle to pass the Senate before becoming law
  • The legislation remains politically contentious, with major debates over SNAP food aid cuts, farm subsidies, and regulatory issues (like pesticide rules and livestock standards). The Senate is expected to revise key provisions

Advancing these bills was an important victory for Speaker Johnson who navigated bitter internal GOP divisions to deliver some much needed wins for the GOP.

However, many items are still on the docket for when they return on May 12. In the meantime, the midterm elections continue to draw closer, and with just six months to go, passing legislation and garnering bipartisan compromise will become more and more difficult.

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

Contact  

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@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. © 2026 CRE Finance Council. All rights reserved.
Congressional Roundup: Shutdown Ends (Mostly)
May 05, 2026
Congress had a busy week to close out the month of April with several key pieces of legislation advancing after numerous delays.

No content found

No content found

No content found

No content found

No content found

Become a Member

CREFC offers industry participants an unparalleled ability to connect, participate, advocate and learn!
Apply Now

Sign Up for eNews

Subscribe