Opening of Ace Hardwood Store. Loan provided by Commercial Loan Direct.
Written by Leane Eicoff| September 29, 2018
Last year, some government officials began to realize the fallout that the original structure of the Securitization Safe Harbor Rule (i.e. risk retention) would have on the commercial real estate market. Because of that, some representatives started to look for a way to soften the original regulations while still protecting the public. On March 2nd of 2016, the House Financial Service Committee proposed an amendment called the Access to CRE Capital Act (meant to ease some of the original restrictions) that is supposed to be put up for consideration in the House and Senate this year. Let"s take a look at how this bill could change the current structure.
This bill aims to enable more CRE loans to become "qualified" (and therefore exempt from the risk retention rule) as well as certain interest-only loans to be exempt. Currently, a "qualified" real estate loan would have the following characteristics:
Some of the material amendments that are proposed are the following:
Qualified CRE loans will be redefined:
Keep in mind that proposal of this bill by the House Financial Services Committee is only one of several steps in the process of passing it into law; the bill must also be approved by the House of Representatives, the Senate, and the President, so for right now, risk retention will stay in its current form.
What to know more about Risk Retention? See the rest of the series here:
What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
- Vincent Arias
We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
- Rita Pisarski
We found an account with the email address you provided. Let's get you logged in by putting your password below.