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Bill114th CongressFiled Feb 25, 2016Finance and Financial Sector
H.R. 4620

Preserving Access to CRE Capital Act of 2016

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary reported to house without amendment (May 26, 2016)

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Preserving Access to CRE Capital Act of 2016

(Sec. 2) This bill amends the Securities Exchange Act of 1934 concerning credit risk retention standards for commercial real estate loans to revise the optional standard that may include retention of the first-loss position by a third-party purchaser that specifically negotiates for the purchase of that first loss position, holds adequate financial resources to back losses, provides due diligence on all individual assets in the pool before issuance of the asset-backed securities, and meets the same standards for risk retention as the federal banking agencies and the Securities and Exchange Commission (SEC) require of the securitizer.

The revised specifications for retention of the first-loss position by a third-party purchaser shall mean the permissible risk retention of the first-loss position by a one or two party third-party purchaser, who may hold the retention obligation in either a senior-subordinate structure or pari passu (where two or more assets, securities, creditors or obligations are equally managed without any display of preference), as long as each party meets the requirements expressed above.

The bill exempts from risk retention requirements the securitization of a single commercial real estate loan or a group of cross-collateralized or cross-defaulted commercial real estate loans that represent the obligation of one or more related borrowers secured by commercial properties under direct or indirect common ownership or control.

The SEC and the federal banking agencies shall jointly maintain specified regulations which exempt qualified commercial real estate loans from risk retention requirements.

What just happenedMay 26, 2016

Placed on the Union Calendar, Calendar No. 463.

Who’s behind it

Rep. Hill, J. French [R-AR-2](R-AR)Sponsor
7 cosponsors1 D6 R
Read on Congress.gov
7cosponsors2committees10actions8subjects
  1. May 26, 2016CalendarsH12410

    Placed on the Union Calendar, Calendar No. 463.

  2. May 26, 2016CommitteeH12200

    Reported by the Committee on Financial Services. H. Rept. 114-597.

    Financial Services Committee
  3. May 26, 2016Committee5000

    Reported by the Committee on Financial Services. H. Rept. 114-597.

    Financial Services Committee
  4. May 19, 2016Committee

    Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment. Hearings held.

    Securities, Insurance, and Investment Subcommittee
  5. Mar 2, 2016Committee

    Ordered to be Reported by the Yeas and Nays: 39 - 18.

    Financial Services Committee
  6. Mar 2, 2016Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  7. Feb 25, 2016IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  8. Feb 25, 2016IntroReferralIntro-H

    Introduced in House

  9. Feb 25, 2016IntroReferral1000

    Introduced in House

  10. Feb 24, 2016Committee

    Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Introduction and Referral.

    Capital Markets Subcommittee
Reported to House without amendmentMay 26, 201679

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Preserving Access to CRE Capital Act of 2016

(Sec. 2) This bill amends the Securities Exchange Act of 1934 concerning credit risk retention standards for commercial real estate loans to revise the optional standard that may include retention of the first-loss position by a third-party purchaser that specifically negotiates for the purchase of that first loss position, holds adequate financial resources to back losses, provides due diligence on all individual assets in the pool before issuance of the asset-backed securities, and meets the same standards for risk retention as the federal banking agencies and the Securities and Exchange Commission (SEC) require of the securitizer.

The revised specifications for retention of the first-loss position by a third-party purchaser shall mean the permissible risk retention of the first-loss position by a one or two party third-party purchaser, who may hold the retention obligation in either a senior-subordinate structure or pari passu (where two or more assets, securities, creditors or obligations are equally managed without any display of preference), as long as each party meets the requirements expressed above.

The bill exempts from risk retention requirements the securitization of a single commercial real estate loan or a group of cross-collateralized or cross-defaulted commercial real estate loans that represent the obligation of one or more related borrowers secured by commercial properties under direct or indirect common ownership or control.

The SEC and the federal banking agencies shall jointly maintain specified regulations which exempt qualified commercial real estate loans from risk retention requirements.

Introduced in HouseFeb 25, 2016

Preserving Access to CRE Capital Act of 2016

This bill amends the Securities Exchange Act of 1934 concerning credit risk retention standards for commercial real estate loans to revise the optional standard that may include retention of the first-loss position by a third-party purchaser that specifically negotiates for the purchase of that first loss position, holds adequate financial resources to back losses, provides due diligence on all individual assets in the pool before issuance of the asset-backed securities, and meets the same standards for risk retention as the federal banking agencies and the Securities and Exchange Commission (SEC) require of the securitizer.

The revised specifications for retention of the first-loss position by a third-party purchaser shall mean the permissible risk retention of the first-loss position by a one or two party third-party purchaser, who may hold the retention obligation in either a senior-subordinate structure or pari passu (where two or more assets, securities, creditors or obligations are equally managed without any display of preference), as long as each party meets the requirements expressed above.

The bill exempts from risk retention requirements the securitization of a single commercial real estate loan or a group of cross-collateralized or cross-defaulted commercial real estate loans that represent the obligation of one or more related borrowers secured by commercial properties under direct or indirect common ownership or control.

The SEC and the federal banking agencies shall jointly maintain specified regulations which exempt qualified commercial real estate loans from risk retention requirements.

Preserving Access to CRE Capital Act of 2016 — Informed