Policy Issues
Capital and Credit

Roundtable Remains Focused on Maintaining Reliable Credit Capacity, Capital Formations; Minimizing Regulatory Overreach; and Effective Risk Management Tools Vital to Liquidity   
 
  
  

2018 Policy Issues Snapshot
More detailed information on various Capital and Credit policy issues can be found in recent issues of Roundtable Weekly — our weekly policy eNewsletter that can searched by key word or phrase.  The Roundtable's 2018 National Policy Agenda: A Building For the Future, also includes a section on Capital & Credit Policy.

RW_cover_2012

News on various credit and capital issues can be found in recent issues of Roundtable Weekly — our weekly policy eNewsletter that can searched by key word or phrase.

 Cumulative Impact of Regulation  

 Various Legislative Measures to Address Credit Capacity and Capital Formation / Basel III High Volatility Commercial Real Estate (HVCRE) Rule 

 Reauthorizing the National Flood Insurance Program (NFIP); Expanding Private Markets  

Developing an Effective, Long-Term Terrorism Risk Insurance Program

✓ Trump Administration Focuses on Economic Growth; Improved Outlook for Regulatory Reforms  
The Trump economic team has an ambitious agenda on a number of key issues. They are focused on enacting measures to help grow the economy – including efforts to reduce regulations viewed as burdensome or hindering economic growth.

Working with a Congress where both chambers are run by Republicans for the first time in a decade – they have an opportunity to provide the business community with regulatory relief on a number of key areas – including financial services issues. 

The Administration has already stalled the implementation of new regulations and are also focused on repeal or reform of Dodd-Frank, and potential diminution of new Basel rules.CRE. 

✓ Cumulative Impact of Regulation     
Over the next three years, approximately $1 billion a day in commercial real estate debt is maturing – including some $411 billion in commercial bank debt and $265 billion of CMBS loans. So, maintaining adequate credit capacity is vital for CRE.

As financial institutions absorb a multitude of overlapping regulations, we continue to raise concerns with policymakers about the cumulative impact these rules are having on real estate credit capacity, liquidity and capital formation.

Our specific concerns are focused on various Dodd-Frank and Basel rules including:
- Dodd-Frank Risk-Retention Rules
- Dodd-Frank Volcker Rule
- Basel III High Volatility Commercial Real Estate (HVCRE)
- Basel III Liquidity Coverage Ratio rule (LCR)
- Basel III Net Stable Funding Ratio (NSFR)

To encourage stability in real estate credit capacity and capital formation, policymakers should consider balanced reforms to certain provisions of Basel III and Dodd-Frank.

The Roundtable encourages policies that provide relief from overly restrictive regulation and support measures that would encourage capital formation, balanced lending and investments in the U.S. economy—supporting job creation and economic growth.

✓ Recent Developments:

⇒ 03/23/2018      Capital and Credit
CAPITAL & CREDIT - March 23, 2018 - Roundtable Weekly 
House Considers Changes to Senate-Passed Dodd-Frank Reform Bill That Includes Roundtable-Backed HVCRE Provision 

⇒ 03/16/2018      Capital and Credit
CAPITAL & CREDIT – HVCRE - March 16, 2018 - Roundtable Weekly 
Senate Passes Dodd-Frank Reform Legislation With Roundtable-Backed HVCRE Provision; Bill Faces Headwinds in House 

⇒ 03/09/2018      Capital and Credit
CAPITAL & CREDIT – HVCRE - March 9, 2018 - Roundtable Weekly 
Dodd-Frank Reform Legislation Includes Measure to Modify Banking Rule Affecting Acquisition, Development, or Construction Loans; Congressional Votes Next Week 

⇒ 01/12/2018      Capital and Credit
CAPITAL & CREDIT - January 12, 2018 - Roundtable Weekly 
Roundtable Encourages Senate Banking Committee to Consider HVCRE Legislation That Would Clarify Banking Rule Affecting Acquisition, Development, or Construction Loans 

⇒ 12/22/2017      Capital and Credit
CAPITAL & CREDIT - December 22, 2017 - Roundtable Weekly 
Roundtable Submits Formal Comments on Proposed HVADC Rule, Raising Concerns About Clarifying Banking Rules Affecting Acquisition, Development, or Construction Loans   

 ✓ Terrorism Risk Insurance Program Extended  
Terrorism continues to pose a clear and present danger to our nation and to the American economy. Originally enacted in 2002, in response to the failure of insurance markets to offer terrorism risk coverage to commercial policyholders, the Terrorism Risk Insurance Act (TRIA) was extended in 2005, 2007 and again in 2015 – following a 12-day lapse when Congress failed to complete their work on reauthorization at the end of 2014.

TRIA is essential for commercial real estate as lenders require “all risk” insurance coverage – including terrorism coverage – to cover the risk of loss to the collateral. At virtually no cost to the taxpayer, TRIA has allowed our economy to move forward even in the face of terrorist threats.

Yet, the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) is scheduled to sunset on Dec. 31, 2020. Working with the Treasury Department’s Federal Insurance Office (FIO), the TRIA Advisory Committee on Risk-Sharing Mechanisms (ACRSM), the insurance industry, and Congressional policymakers, The Roundtable is focused on developing an effective, long-term approach for a federal terrorism risk insurance program. Such a long-term program should enable policyholders to secure the terrorism risk coverage they need without facing periodic renewals by the federal government. require.

The Real Estate Roundtable supports efforts to promote economically responsible commercial real estate lending that reflects sound underwriting and risk management practices, and rational pricing of economic risk. We continue to urge policymakers to take action that encourages stable valuations, enhanced transparency and sensible underwriting, and support efforts to establish appropriate systemic safeguards—all key factors for a reliable credit system.stable valuations, enhanced transparency and sensible underwriting, and support efforts to establish appropriate systemic safeguards—all key factors for a reliable credit system. 

-------------------------------------------

The Real Estate Roundtable supports efforts to promote economically responsible commercial real estate lending that reflects sound underwriting and risk management practices, and rational pricing of economic risk. We continue to urge policymakers to take action that encourages stable valuations, enhanced transparency and sensible underwriting, and support efforts to establish appropriate systemic safeguards — all key factors for a reliable credit system.

(For more information, please email info@rer.org or call 202-639-8400.  For weekly updates on key policy issues affecting commercial real estate, see our eNewsletter  Roundtable Weekly

The Real Estate Capital Policy Advisory Committee (RECPAC) is co-chaired by Dennis Lopez (AXA Real Estate Investment Managers) and Mark Myers (Wells Fargo) and vice-chaired by Diana Reid (PNC Real Estate).   RECPAC consists of principal members from a broad spectrum of real estate investment, ownership and financial services companies. For additional information on RECPAC issues, please contact Clifton (Chip) E. Rodgers, Jr., Senior Vice President, The Real Estate Roundtable, at (202) 639-8400 or via e-mail at crodgers@rer.org.

#   #    #

 imgAdFoundation           imgAdRealEstate  

© Copyright 2018. All Rights Reserved.
The Real Estate Roundtable, Market Square West, 801 Pennsylvania Ave, NW Suite 720, Washington, DC 20004
Tel: 202.639.8400      Fax: 202.639.8442     info@rer.org | Privacy Policy