Tag: Capital and Credit

Coalition Urges Regulators to Refine Basel III Proposal for CRE Lending

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The Real Estate Roundtable (RER) and a coalition of national real estate organizations urged federal banking regulators this week to make targeted refinements to the revised Basel III Endgame proposal to better calibrate capital rules for commercial and residential real estate lending. (Letter, June 18)

Why It Matters

  • In March, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) unveiled a substantially revised Basel III Endgame proposal, replacing the 2023 framework that drew broad industry opposition. (Reuters, June 18)
  • The coalition commended regulators for improving the revised proposal, particularly by tailoring capital requirements more closely to risk across different assets and activities, but warned that additional changes are needed to avoid unnecessarily constraining CRE credit. (Letter, June 18)
  • Commercial and multifamily real estate is a roughly $20 trillion sector supported by more than $6.4 trillion in debt, with approximately $3 trillion in CRE loans maturing over the next five years.
  • For commercial real estate, the reset could ease regulatory pressure that threatened to constrain credit for real estate lending, mortgage activity, and other capital-intensive transactions. (Roundtable Weekly, March 20)
  • “The Proposals significantly improve on the 2023 proposal,” the coalition wrote, adding that targeted refinements would “better calibrate CRE capital requirements without unduly constraining the financial system or burdening housing providers.”

Policy Priorities

  • The coalition urged regulators to better align capital treatment with actual risk for CRE exposures, multifamily loans, securitizations, warehouse facilities, mortgage servicing rights, Low-Income Housing Tax Credit (LIHTC) investments, and Fannie Mae Delegated Underwriting and Servicing (DUS) exposures.
  • The letter also recommends avoiding structural penalties for common CRE financing arrangements, including mezzanine loans, preferred equity, B-notes, junior participations, and loans involving special-purpose entities. (Letter, June 18)
  • Capital rules that are not properly calibrated could increase borrowing costs, reduce bank lending capacity, and constrain credit for housing development and other income-producing real estate.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) has consistently opposed the original Basel III proposal, citing its potential negative impact on available credit capacity for commercial real estate transactions, market liquidity, and economic growth. (Roundtable Weekly, Nov. 2023 | Jan. 2024 |  Mar. 2024 | Dec. 2025 | Feb. 2026 |  March 20, 2026)
  • Earlier this year, federal regulators released a substantially revised Basel III proposal that reduced capital requirements for the largest U.S. banks by 2.4% overall and lowered certain risk weights for mortgages and mortgage servicing assets. (Financial Times, June 17)
  • In its June letter, the coalition urged regulators to preserve the proposal’s improvements while making targeted refinements to avoid unnecessarily constraining CRE lending, affordable housing investment, or broader economic growth. (Letter, June 18)

RER will continue working with policymakers, regulators, and real estate industry partners to support capital rules that are appropriately calibrated, risk-based, and aligned with the need for a stable and liquid commercial real estate finance market.

Roundtable Backs DOL Proposal to Expand 401(k) Access to Alternative Assets

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The Real Estate Roundtable (RER) submitted comments this week supporting the Department of Labor’s (DOL) proposed rule to clarify fiduciary standards for including alternative assets, such as real estate, in 401(k) retirement plans. In the letter, RER affirmed that the proposal would expand investment choice, improve diversification, and provide retirement savers with access to asset classes that have long been available to institutional investors. (Letter, June 1)

Why It Matters

  • RER’s comments respond to the DOL’s proposed rule implementing the August 2025 Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors,” which seeks to clarify fiduciary obligations when plan sponsors offer investment options that include alternative assets such as private equity, real estate, private credit, and infrastructure investments. (Letter, June 1)
  • The DOL proposal would also establish a process-based safe harbor under the Employee Retirement Income Security Act (ERISA), helping reduce regulatory uncertainty and litigation risk that have discouraged many employers from offering alternative investment options in defined-contribution retirement plans. (DOL Press Release, March 30)
  • More than 90 million Americans participate in 401(k)-style retirement plans but generally lack access to the same alternative investment opportunities available to defined-benefit plan portfolios, such as pensions and other institutional investors. (Letter, June 1)

RER Advocacy

  • RER’s letter argues that the DOL’s rule appropriately clarifies that ERISA gives fiduciaries discretion and flexibility to determine when alternative investments are suitable for plan participants. (Letter, June 1)
  • RER also emphasized that defined-benefit pension plans that maintain allocations to private equity and other alternative assets have historically outperformed many defined-contribution plans, giving institutional investors access to diversification and return opportunities generally unavailable to retail retirement savers. (Letter, June 1)
  • The proposal would help level the playing field between 401(k) investors and defined-benefit plans by allowing fiduciaries to consider a broader range of investment options when they determine such investments are appropriate for plan participants. (Letter, June 1)
  • “RER believes that this rulemaking represents an important step toward restoring the principle that retirement savers, not regulators, determine how they invest,” the letter stated.

State of Play

  • The proposal has drawn mixed reactions on Capitol Hill.
  • Senior congressional Democrats, including House Education and Workforce Committee Ranking Member Bobby Scott (D-VA), Senate HELP Committee Ranking Member Bernie Sanders (I-VT), and Senate Banking Committee Ranking Member Elizabeth Warren (D-MA), urged DOL this week to withdraw the proposal. (Letter, June 1)
  • The Democratic lawmakers argued that expanding access to private equity, cryptocurrency, and other alternative investments could expose retirement savers to “risky, complex, and expensive” investments and weaken fiduciary protections for retired savers. (Letter, June 1)
  • Meanwhile, a group of 21 Senate Republicans, including Senate Banking Chair Tim Scott (R-SC) and HELP Chair Bill Cassidy (R-LA), submitted a letter backing the proposal, arguing that it “has the potential to materially improve long-term retirement outcomes for American workers.” (PoliticoPRO, June 2)
  • A separate group of 25 House Republicans, including House Budget Chair Jodey Arrington (R-TX) and House Financial Services Subcommittee on Financial Institutions and Monetary Policy Chair Andy Barr (R-KY), also submitted a letter advocating for the policy. (PoliticoPRO, June 2)
  • In a March press release, then-U.S. Secretary of Labor Lori Chavez-DeRemer explained, “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.” (DOL Press Release, March 30)
  • SEC Chairman Paul S. Atkins echoed former Secretary Chavez-DeRemer’s remarks, saying, “Americans’ ability to participate more fully in innovation and economic growth through well-diversified long-term investments is a vitally important priority for effective retirement planning.” (DOL Press Release, March 30)

What’s Next

  • The public comment period closed on June 1, and DOL is reviewing stakeholder feedback before deciding whether to finalize the rule later this year.

RER will continue to engage with policymakers on retirement investment policy and support reforms that expand capital formation, balance investment flexibility with appropriate oversight, and provide American workers with broader opportunities to build long-term wealth.

Roundtable Urges FTC, DOJ to Preserve HSR Real Estate Transaction Exemptions

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The Real Estate Roundtable (RER) submitted comments this week urging the Federal Trade Commission (FTC) and Department of Justice (DOJ) to preserve longstanding real estate exemptions under the Hart-Scott-Rodino Act (HSR), warning that eliminating them would impose substantial costs and delays on lawful real estate transactions without delivering any clear antitrust benefit. (Letter, May 26)

Why It Matters

  • The comments respond to an FTC and DOJ request for public input on potential changes to the Premerger Notification and Report Form, including whether the agencies should revisit exemptions for certain real estate transactions. (Letter, May 26)
  • The real estate exemptions were adopted in 1996 because these transactions were considered unlikely to violate antitrust laws.
  • The exemptions cover several categories of real property acquisitions, including office, residential, retail, hotel, warehouse, agricultural, recreational, and other rental real estate assets.
  • At the time, the FTC said the exemptions would “remove an unnecessary burden from business” and allow the FTC and DOJ to better focus resources on transactions more likely to cause competitive harm.
  • The letter emphasized that the same policy and economic rationale remain sound today, given that real estate markets are local, highly fragmented, and shaped by property type, geography, zoning rules, neighborhood characteristics, and other market-specific factors.

Market Impact

  • Eliminating the exemptions would create new regulatory burdens for transactions that have long been considered unlikely to raise antitrust concerns. (Letter, May 26)
  • HSR filing fees can reach up to $2.46 million, in addition to legal, financial, and operational costs associated with preparing filings.
  • Potential new filing requirements could slow transactions, disrupt market liquidity, and create additional uncertainty across real estate markets at a time when capital formation remains critical to investment and development.
  • The agencies have not provided evidence that circumstances have changed materially since the exemptions were adopted, or that exempted real estate transactions have had a negative effect on competition.
  • RER board member Ross Perot Jr. (Chairman, The Perot Companies and Hillwood), discussed the real estate market and how developers are keeping up with demand this week on CNBC’s The Exchange. He emphasized the need for pro-growth tax and regulatory policies to support investment, job creation, AI infrastructure, and responsible development in communities across the country. (CNBC, May 29)

Housing Supply

  • The letter warned that removing the exemptions would not be a targeted way to address concerns about single-family housing acquisitions by large institutional investors. (Letter, May 26)
  • The vast majority of transactions covered by the exemptions do not involve single-family housing, and many single-family housing transactions would not meet the $133.9 million HSR filing threshold even if the exemptions were removed.
  • Large institutional investors collectively own less than 1% of single-family homes nationally and make less than 3% of annual home purchases in the U.S. (Roundtable Weekly, Jan. 9)
  • The costs and delays of HSR reporting would fall disproportionately on smaller buyers such as homebuilders and residential developers acquiring land for new housing projects, potentially increasing development costs and slowing efforts to address the nation’s housing shortage.

Preserving the exemptions would help avoid unnecessary regulatory burdens, support market liquidity, and protect the capital needed to expand housing supply and strengthen the broader economy.

CRE Leaders Gather in Washington to Discuss Housing, Tax Policy, National Security, Energy, and More

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The Real Estate Roundtable’s (RER) Spring Roundtable Meeting brought commercial real estate leaders to Washington this week for bipartisan discussions on national security, housing, tax policy, energy, and economic growth. The meeting (Roundtable-level members only) came as Congress continued to debate housing legislation, implementation of the One Big Beautiful Bill Act, and broader questions of U.S. competitiveness and leadership. (RER’s Spring 2026 Policy Priorities and Executive Summary)

Across the agenda, speakers echoed similar concerns and priorities, including strengthening the workforce pipeline, expanding career and technical education, permitting reform, reducing regulatory burdens, and ensuring reliable energy infrastructure to support AI, data centers, and long-term economic growth.

Roundtable Leadership

  • RER Board Chair Kathleen McCarthy Baldwin (Former Global Co-Head of Blackstone Real Estate) opened the meeting by highlighting the value of convening industry leaders in Washington and recognizing the strong leadership across the organization, including the nominating committee’s work and the incoming board members’ efforts to position RER for the year ahead.
  • RER President and CEO Jeffrey DeBoer said that RER’s impact in Washington is built on active member involvement, strong committee engagement, and continued support for REALPAC. “Our voice is strongest when members are engaged, our committees are active, and we continue to invest in the advocacy efforts that help advance the industry’s priorities.”

Speakers & Policy Issues

  • Roundtable members engaged in policy discussions with the following guests:
  • (R-L): Rep. Joe Neguse (D-CO) (House Assistant Democratic Leader; Committees: Natural Resources, Rules, and Judiciary), Rep. Ritchie Torres (D-NY) (Committees: Financial Services; Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party), and Rep. George Whitesides (D-CA) (Committees: Science, Space and Technology; Armed Services) joined Monday evening’s dinner conversation on the political landscape, affordability, housing, immigration, and the policy choices shaping the run-up to the midterms. The panel also explored housing supply strategies, bipartisan problem-solving, and what voters are looking for from both parties on economic opportunity and cost-of-living concerns.
  • Sen. Bill Hagerty (R-TN) (Committees: Appropriations; Banking, Housing and Urban Affairs; and Foreign Relations) discussed national security, trade, China, workforce development, and the policy environment needed to strengthen American competitiveness. He also addressed housing supply and his recently introduced Freedom to Build Act, which is intended to incentivize deregulation, expand housing supply, and make homes more affordable by aligning existing federal incentives with communities that reduce barriers to building. (Roundtable Weekly, April 17)
  • Rep. Mike Flood (R-NE) (House Financial Services Committee) weighed in on the housing bills and the path toward bridging House and Senate priorities, with particular focus on concerns that Section 901 of the Senate-passed 21st Century ROAD to Housing Act could reduce housing supply and create new market uncertainty. He also addressed TRIA reauthorization, mortgage market stability, access to credit, and the need for practical housing solutions that expand supply.
  • David Malpass (former President of the World Bank and former Under Secretary for International Affairs at the U.S. Department of the Treasury) offered his perspective on global economic ambiguity, energy policy, domestic production, labor shortages, and U.S. leadership. He also spoke about permitting reform, workforce development, interest rates, and the policy changes needed to support stronger long-term growth.
  • (L-R): Josh Parker (Chairman & CEO, Ancora Group Capital; Chair, RER’s Tax Policy Advisory Committee), Tony Chereso (President & CEO, The Inland Real Estate Group, LLC), and Ryan McCormick (Senior Vice President & Counsel, RER) led a tax policy panel on Treasury implementation of the One Big Beautiful Bill Act, Section 892 regulations, Opportunity Zones implementation, FIRPTA, foreign capital, and other issues affecting real estate investment and capital formation.

Next on RER’s meeting calendar is the all-member Annual Meeting on June 9-10, 2026, in Washington, D.C., which will include policy advisory committee sessions.

The Department of Labor Proposes 401(k) Alternative Investment Rule

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The Department of Labor (DOL) proposed a new rule this week that would make it easier for 401(k) plans to offer investment options with exposure to alternative assets, including private equity, real estate, digital assets, and other nontraditional products—if fiduciaries follow a prudent, process-based framework. The proposal stems from President Trump’s Aug. 7, 2025 Executive Order directing regulators to expand access to alternative assets in defined contribution retirement plans. (DOL News Release, March 30)

Proposed Rule

  • The proposed rule would clarify fiduciary duties under the Employee Retirement Income Security Act (ERISA) and establish a safe harbor for selecting designated investment alternatives, including asset allocation funds that contain alternative assets. (PoliticoPro, March 30)
  • DOL says the rule is intended to reduce regulatory uncertainty and litigation risk that have discouraged plan sponsors from offering broader exposure to private markets and other alternatives in 401(k) plans, even though such investments are not expressly prohibited today.
  • Under the proposal, fiduciaries would need to evaluate factors such as performance, fees, liquidity, valuation, benchmarks, and complexity through an objective and analytical process. (DOL News Release, March 30)

Background

  • While alternative investments have long played a role in defined-benefit plans such as pensions, fiduciary obligations and litigation concerns have made it more difficult to include them in participant-directed defined contribution plans like 401(k)s.
  • Since the Executive Order, regulators and administration officials have signaled growing support for expanding access to alternative investments—including real estate—while emphasizing the need for appropriate guardrails. (Reuters, March 30)

What to Watch

  • The proposal would mark a meaningful shift in the federal government’s approach to alternative investments in retirement plans, particularly by replacing a more cautious posture with a framework centered on fiduciary process rather than asset-class restrictions. (CNBC, March 30)
  • The rule could have important implications for real estate and other alternative asset managers if it leads to broader access to private-market exposure through participant-directed retirement plans.
  • The proposal does not endorse any specific asset class, and fiduciaries would still be expected to determine whether a particular investment is appropriate for plan participants.

What’s Next

  • The proposal is subject to a 60-day public comment period, with DOL signaling it hopes to finalize the rule by year’s end.

Comments are due on June 1, 2026.  RER is working on comments and welcomes input from members. 

The Fed Signals Capital and Liquidity Reforms as Basel III Endgame Work Continues

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The Federal Reserve is moving to recalibrate key elements of the U.S. bank capital and liquidity framework, including Basel III Endgame implementation and targeted mortgage-capital adjustments. The Fed’s Vice Chair for Supervision, Michelle Bowman, signaled this week that reforms should support market liquidity and credit availability while maintaining safety and soundness. (FinancialTimes, Feb. 16)

State of Play

  • Bowman told bankers at the ABA’s 2026 Conference for Community Bankers this week that the Fed will soon seek comment on two proposals to encourage banks to re-engage in mortgage origination and servicing, within the Basel framework. (Speech, Feb. 16)
  • Bowman pointed to a “concerning trend” of mortgage activity to nonbanks. She cited data showing banks originated roughly 60% of mortgages in 2008 and serviced roughly 95% of outstanding balances; by 2023, those figures had fallen to about 35% and about 45%, respectively. (HousingWire, Feb.16).
  • The mortgage capital discussion comes as the Trump administration seeks tools to bolster affordability and credit availability, including directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities. (Reuters, Feb. 18)
  • “By creating a resilient mortgage market that includes robust participation from all types of financial institutions, we can deliver affordable credit and high-quality servicing to borrowers regardless of economic conditions,” Bowman said. (Speech, Feb. 16)
  • Bowman said the shift has implications for the banking industry, mortgage market stability, and consumers.

Basel III Endgame

  • In separate remarks on Feb. 19, Bowman said regulators are modernizing the “four pillars” of the capital framework—stress testing, supplementary leverage ratio (SLR), Basel III Endgame, and the G-SIB surcharge—with a focus on market liquidity and affordable homeownership alongside safety and soundness. (Speech, Feb. 19)
  • Bowman said the Basel effort is “bottom-up,” not “reverse engineered,” arguing that finalizing Basel III would reduce uncertainty and provide clarity for bank capital standards. (PoliticoPro, Feb. 19)
  • The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) recently submitted their Basel-related proposals to the Office of Management and Budget (OMB) for review—an important step in the interagency process. (Reuters, Feb. 13)
  • The Trump administration regulators have said they plan to rewrite liquidity rules, though details have not been released. (PoliticoPro, Feb. 19)
  • Bowman’s recent remarks are the clearest signal yet of how the Fed may recalibrate the U.S. approach to Basel capital implementation, following industry concerns that earlier proposals could constrain credit and further shift activity to less-regulated lenders.

Roundtable Advocacy

  • In December, RER and a coalition of leading business trade organizations urged prudential regulators to examine and modernize large bank capital requirements so they continue supporting consumers, businesses, and the broader U.S. economy. (Letter, Dec. 2)
  • The coalition letter underscored the negative economic impacts of inappropriately calibrated capital rules, highlighted risks to American competitiveness, and commended ongoing agency efforts to improve the framework. (Roundtable Weekly, Dec. 5)

What’s Next

  • The Fed is expected to issue the mortgage-capital proposals for public comment before any changes take effect, while agencies continue advancing a revised Basel III Endgame package.
  • Bowman is expected to testify next Thursday alongside the heads of the OCC, the FDIC, and the National Credit Union Administration at a Senate oversight hearing. (WSJ, Feb. 19)

As regulators advance both targeted mortgage capital adjustments and a revised Basel III Endgame proposal, RER will remain engaged to ensure capital reforms do not constrain credit flows essential to commercial real estate, economic activity, and long-term investment, while protecting safety and soundness.

House Passes Bipartisan FSOC Reform Bill

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The House passed six bipartisan bills from the House Financial Services Committee (HFSC) this week, including the Real Estate Roundtable (RER)-backed Financial Stability Oversight Council (FSOC) Improvement Act of 2025. (H.R. 3682). (Press Release, Feb 9)

 FSOC Improvement Act of 2025

  • The House passed the bill unanimously by voice vote after the HFSC approved H.R. 3682 during its Sept. 16, 2025, markup.
  • The bill would reform FSOC by strengthening transparency, accountability, and procedural safeguards in its decision-making process. It is intended to bolster due-process protections, improve interagency coordination, and ensure designations are based on rigorous analysis.
  • The bill would require FSOC to consult with a company and its primary regulator before designating a nonbank as a Systemically Important Financial Institution (SIFI). (Letter, Oct. 28)

RER Advocacy

  • RER and coalition partners sent a letter of support for H.R.3682 in October 2025, emphasizing an activities-based approach to systemic risk, transparent cost-benefit analysis, and clear procedural guardrails to improve predictability and interagency coordination. (Roundtable Weekly, Oct. 31)
  • The October letter built on a July 2025 coalition letter urging FSOC to rescind its 2023 interpretive guidance and reinstate its 2019 framework, citing due-process protections and stronger coordination with primary regulators. (Roundtable Weekly, July 18)
  • RER has consistently urged regulators to focus on systemic-risk activities—not broad entity designations that can fuel regulatory overreach and create unintended consequences for liquidity, capital formation, and credit availability.

What’s Next

The bill now moves to the Senate Banking Committee for consideration.

FSOC Hearing Highlights Nonbank Oversight as CRE Reacts to Fed Chair Nomination

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This week, the House Financial Services Committee (HFSC) and Senate Banking, Housing and Urban Affairs Committee held hearings with Treasury Secretary Scott Bessent to review the Financial Stability Oversight Council’s (FSOC) 2025 Annual Report. Lawmakers used the session to raise broader concerns about financial regulation, capital formation, and credit availability, including attention on FSOC’s role in banking regulation.

FSOC and Regulatory Direction

  • In his testimony, Sec. Bessent described a recalibrated approach at FSOC that focuses on identifying specific risky activities, rather than broadly regulating entire firms or sectors. He criticized prior “regulation by reflex” and stated that FSOC should avoid labeling wide swaths of the financial system as vulnerable, absent clear, material risk. (Watch Hearing)  
  • “FSOC should… work with its members to support efforts to avoid or pare back existing regulation that stifles pro-growth lending, capital formation, and innovation. And the best way to achieve these goals is by centering economic growth and economic security at the heart of FSOC’s agenda,” Sec. Bessent said. (Politico Pro, Feb. 4)
  • Several exchanges focused on FSOC’s authority to designate nonbank financial companies as Systemically Important Financial Institutions (SIFIs). Sec. Bessent confirmed a preference for an activities-based framework, signaling openness to clearer standards and restraint in the use of entity-based designations. (Watch Hearing)  
  • Sec. Bessent added that he would propose new nonbank guidance later this year, and that he supports higher deposit insurance to protect small banks’ competitiveness against larger institutions. (Politico Pro, Feb. 4)
  • He also supported HFSC Chairman French Hill’s (R-AR) community banking legislative package. He emphasized that small and community banks need tailored capital and risk standards to succeed. (American Banker, Feb. 4)
  • Democratic lawmakers warned that easing regulatory scrutiny could increase systemic risk and repeat conditions that preceded the 2008 financial crisis, with HFSC Ranking Member Maxine Waters (D-CA) arguing that FSOC should play a stronger role in identifying risks across the financial system, including among nonbank entities. (Watch Hearing)

Affordability and Tariffs

  • During the HFSC hearing, Ranking Member Waters pressed Sec. Bessent on whether the administration’s tariffs have contributed to persistent inflation. Sec. Bessent rejected that characterization and disputed claims that he had previously warned investors tariffs were inflationary. (American Banker, Feb. 4)
  • Ranking Member Waters also linked tariffs directly to worsening housing affordability, pointing to duties on key construction inputs such as lumber, steel, and appliances. (American Banker, Feb. 4)
  • While Democrats argued that tariffs and high prices continue to burden consumers, Sec. Bessent cited a Wharton study that points to immigration-driven demand as a contributing factor to higher housing costs. (CNBC, Feb. 4)

Roundtable Advocacy

  • The Real Estate Roundtable (RER) and coalition partners have supported the Financial Stability Oversight Council Improvement Act (H.R.3682), which would require FSOC to consult with a company and its primary regulator before designating a nonbank as a SIFI. (Letter, Oct. 28)
  • The bill is intended to strengthen due-process protections, improve interagency coordination, and ensure designations are based on rigorous analysis.
  • RER has consistently urged regulators to focus on activities that pose genuine systemic risk, rather than imposing broad designations that can create regulatory overreach and unintended consequences for credit markets. (Roundtable Weekly, Oct. 31)

CRE’s Reaction to Fed Chair Nomination

  • Last week, President Donald Trump announced his nomination of Kevin Warsh, a former Federal Reserve Governor, to succeed Fed Chair Jerome Powell. (Axios, Jan. 30)
  • As industry media outlets have reported, commercial real estate and finance leaders have broadly welcomed the nomination, citing Warsh’s experience from the financial crisis and his capital markets expertise. (Bisnow, Jan. 30)
  • “Kevin Warsh is a smart, thoughtful, and experienced nominee. His deep understanding of monetary policy and financial markets would help maintain and strengthen market confidence at a time when economic certainty matters most,” Jeffrey D. DeBoer, RER President and CEO, said.
  • Bob Broeksmit, President and CEO of the Mortgage Bankers Association, said in a statement that Warsh’s prior service on the Fed board gave him a reputation as “a prudent, thoughtful voice on monetary policy.”(ConnectCRE, Jan. 30)
  • CRE finance experts noted that while Warsh’s nomination could raise expectations for near-term rate cuts, uncertainty surrounding the confirmation process and Fed independence may keep long-term Treasury yields, as well as permanent financing costs, elevated. (ConnectCRE, Jan. 30)

RER remains committed to engaging policymakers on FSOC reform and related financial regulations to ensure oversight frameworks support capital formation, liquidity, and economic growth.

RER Backs Community Banking Reform to Expand Credit and Local Investment

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The Real Estate Roundtable (RER) submitted a letter of support this week for the Main Street Capital Access Act (H.R. 6955). RER praised the bill as a long-overdue step toward “common sense tailoring” of bank regulation in comments sent to House Financial Services Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY). (Letter, Jan. 8)

Background

  • Introduced on Jan. 7, the Main Street Capital Access Act looks to ease regulations on small and mid-size banks and increase their access to capital.  
  • The measure bundles 29 bills that advanced through the full House Financial Services Committee last year, several of which received overwhelming bipartisan support.
  • Chairman Hill said, “Over the past year, the Subcommittee on Financial Institutions under Chair Barr’s leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street.”
  • Chair Barr will be a featured speaker at RER’s State of the Industry Meeting next week.
  • The package includes legislation that promotes new bank formation, expands local community access, tailors bank regulation, fosters fair and transparent bank supervision, and supports competition, innovation, and responsible bank partnerships.

Roundtable Advocacy

  • RER’s letter emphasizes that community and regional banks are vital to the financing ecosystem for commercial and residential real estate, and therefore play a key role in addressing the nation’s housing shortage.
  • “The Main Street Capital Access Act will help revitalize communities across the nation by encouraging local bank formation and enhancing credit capacity,” wrote RER President and CEO Jeffrey DeBoer. “By easing outdated regulatory burdens for community banks, it will help unlock more capital for housing and small businesses and permit Main Street community lenders to focus on serving families and local economies, making life more affordable for Americans.”
  • DeBoer also underscored the impact of the decline in new bank formation in recent years. “This lack of ‘de novo’ or ‘new’ bank activity, coupled with ‘banking deserts’ that are common in rural areas, has led to higher costs for households and less access to capital and investment for small and medium-sized businesses,” DeBoer added.

Why It Matters

  • Community banks serve as a primary capital source for local housing and commercial real estate projects, particularly in underserved markets where larger institutions may have little presence.
  • RER has consistently advocated for right-sized financial regulation that promotes liquidity in the CRE market while maintaining safety and soundness in the banking system. The Main Street Capital Access Act aligns with this principle by streamlining oversight and promoting innovation in the small-bank sector.

Next Steps

RER will continue to work with Congress and the administration to advance policy measures that encourage capital formation, enhance credit capacity, support housing production, and foster economic development in communities around the country.

Government Shutdown: What It Means for CRE

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The federal government shut down on Wednesday—the first lapse since 2019—with no deal in sight. Both chambers are at an impasse after dueling stopgap funding bills failed again this week. (AP News, Oct. 2)

State of Play

  • Senate Democrats blocked Republicans’ “clean” Nov. 21 continuing resolution (CR). Republicans rejected Democrats’ version that included extending enhanced Affordable Care Act subsidies and reversing Medicaid cuts.
  • Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY) may meet Friday in their first one-on-one since the standoff began. Another round of votes is planned for Friday. (Punchbowl News, Oct. 2)
  • If Democrats block the GOP plan again, Majority Leader Thune is expected to adjourn the Senate until Monday, canceling Saturday votes, and force another vote on Monday. (Punchbowl News, Oct. 2)

CRE Impact

  • NFIP: The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • Senate Banking Committee Chair Tim Scott (R-SC) “remains committed” to funding the program and is “optimistic” Democrats will join Republicans to prevent a lapse in coverage during peak hurricane season, his spokesperson said. (Politico, Sept. 30)
  • Energy: The ENERGY STAR program has halted partner application processing, product list updates, and specification releases—stalling efficiency certifications important to building owners and tenants. Meanwhile, it remains unclear how the shutdown will affect EPA Administrator Lee Zeldin’s broader reorganization and regulatory timeline. (PoliticoPro, Sept. 30, Oct. 1 | NAHB, Oct. 1)
  • Housing: HUD is unable to access certain funds used to prevent evictions in its Tenant-Based Rental Assistance Program. Affordable housing initiatives also face delays due to the furloughing of program staff. (Politico, Sept. 30)
  • Construction: Fallout from the shutdown is also reverberating through the construction sector, where contractors warn that halting federal projects will ripple into private markets by raising costs and eroding confidence. (UtilityDive, Oct. 1)
  • Tax Policy & Treasury: Despite the shutdown, Treasury has said it will continue implementing President Trump’s tax law and deregulatory agenda, relying on multi-year funding streams. Its tax policy office will remain active, advancing the president’s tax cuts and regulatory rollbacks. Other Treasury operations—including debt management, collections, and oversight of financial markets will also continue. (PoliticoPro, Sept. 29)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.”

As the shutdown continues, mounting strain on real estate transactions, insurance coverage, and investment planning will intensify pressure on Congress to resolve the impasse.