WASHINGTON, D.C. (November 9, 2017) – (RealEstateRama) — David H. Stevens, CMB, President and CEO of the Mortgage Bankers Association (MBA), released the following statement, praising the House of Representatives for passing by a voice vote H.R. 2148, the Clarifying Commercial Real Estate Loans Act:
“I want to commend the House for passing this important bill which will allow lenders to better meet the needs of their borrowers, and will also support the overall commercial real estate finance ecosystem.
“Commercial and multifamily real estate finance is a nearly $4 trillion industry and touches almost every segment of the economy. Acquisition, Development or Construction (ADC) loans in particular, which this legislation supports, help to promote economic growth and job creation.”
The bipartisan legislation, introduced by Representatives Robert Pittenger (R-NC) and David Scott (D-GA), clarifies and amends parts of the Basel III high volatility commercial real estate (HVCRE) banking regulation. Specifically, this bill would clarify and adjust the line between loans that should and should not be classified as HVCRE loans. An amendment to the legislation authored by Representative Carolyn Maloney (D-NY) harmonizes the legislation with some language in the proposed changes recently noticed by regulators.
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