Policy Issues
August 2021 - Pandemic Risk Talking Points
The Real Estate Roundtable supports efforts to promote economically responsible commercial and multifamily real estate lending and risk management tools that maintain liquidity while reflecting sound underwriting and rational pricing of economic risk.
We continue to urge policymakers to pursue measures that encourage stable valuations, appropriate transparency, and support efforts to sustain appropriate systemic safeguards — all key factors for a reliable credit system.

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Pandemic Risk Insurance Issue Position BackgroundThe COVID-19 crisis has highlighted the lack of insurance availability for business continuity coverage for catastrophic pandemic events. Most business interruption insurance policies do not cover pandemic risk-related claims, raising urgent concerns among policyholders – including owners of real estate, the event industry and professional sporting leagues. There are a number of proposals under consideration – including the Pandemic Risk Insurance Act of 2020 (PRIA) – that would establish a federal backstop for pandemic risk coverage.
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Terrorism Risk Insurance Act (TRIA) Issue Position Background
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.
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Reauthorizing the National Flood Insurance Program (NFIP) Issue Position Background
The Roundtable and its partner associations support a long-term reauthorization and improvements of the National Flood Insurance Program (NFIP) that help property owners and renters prepare for and recover from future flood losses. Floods are the most common and most destructive natural disaster in the U.S., and there is limited private market capacity.
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LIBOR Reform Issue Position Background
The Roundtable’s RECPAC has formed a LIBOR Working Group to work toward the development and implementation of an effective new replacement benchmark that does not impair liquidity, needlessly increase borrowing costs, or cause market disruptions.
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Current Expected Credit Losses (CECL) Accounting Standard Issue Position Background
The Roundtable continues to urge the FASB and the Securities and Exchange Commission (SEC) to delay implementation of the CECL standard, which may begin to reduce aggregate bank lending as early as next year.
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CFIUS Reforms to Expand Review of Certain Real Estate Transactions Issue Position Background
CFIUS is a U.S. interagency committee that conducts national security reviews of foreign investment.
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Reforming the Government Sponsored Enterprises (GSEs) Issue Position Background
Successful reform should meet the housing finance needs of the American economy while protecting the taxpayer. The Roundtable encourages policymakers to build upon successful risk-sharing mechanisms and products by employing the existing multifamily finance structures being used by Fannie Mae and Freddie Mac that have been essential in expanding the supply of rural, senior, workforce and affordable rental housing.
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Cannabis Policy Issue Position Background
The Roundtable continues 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.
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High Volatility Commercial Real Estate (HVCRE) Issue Position Background
The Roundtable supports finalizing a federal proposal that would implement modified capital rules for High Volatility Commercial Real Estate (HVCRE) loan exposures as stipulated in Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155).
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Volcker Rule Issue Position Background
The Volcker rule prohibits banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds.
For the commercial real estate industry, the Volcker Rule has put a damper on secondary market trading of commercial mortgage backed securities (CMBS) by limiting the ability of banks to hold inventories of secondary market securities, thereby diminishing market liquidity.
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The Real Estate Capital Policy Advisory Committee (RECPAC) is co-chaired by Dennis Lopez (QuadReal Property Group) and Mark Myers (Wells Fargo). RECPAC consists of principal members from a broad spectrum of real estate investment, ownership and financial services companies.
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