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Bill115th CongressFiled Apr 26, 2017Finance and Financial Sector
H.R. 2148

Clarifying Commercial Real Estate Loans

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house amended (Nov 7, 2017)

Clarifying Commercial Real Estate Loans

(Sec. 2) This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.

An HVCRE ADC loan is a one that: (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.

An HVCRE ADC loan does not include financing for a one- to four-family residential property, agricultural land, real property that would qualify as an investment in community development, existing income-producing real property secured by a mortgage, or certain commercial real-property projects. Furthermore, such a loan does not include any loan made prior to January 1, 2015.

A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, or improvement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.

What just happenedNov 8, 2017

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. Pittenger, Robert [R-NC-9](R-NC)Sponsor
16 cosponsors2 D14 R
Read on Congress.gov
16cosponsors2committees17actions2related bills4subjects
  1. Nov 8, 2017IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Nov 7, 2017FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Nov 7, 2017FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8547-8548)

  4. Nov 7, 2017Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8547-8548)

  5. Nov 7, 2017FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 2148.

  6. Nov 7, 2017FloorH30000

    Considered under suspension of the rules. (consideration: CR H8547-8550)

  7. Nov 7, 2017FloorH30300

    Mr. Huizenga moved to suspend the rules and pass the bill, as amended.

  8. Nov 6, 2017CalendarsH12410

    Placed on the Union Calendar, Calendar No. 288.

  9. Nov 6, 2017CommitteeH12200

    Reported (Amended) by the Committee on Financial Services. H. Rept. 115-392.

    Financial Services Committee
  10. Nov 6, 2017Committee5000

    Reported (Amended) by the Committee on Financial Services. H. Rept. 115-392.

    Financial Services Committee
  11. Oct 12, 2017Committee

    Ordered to be Reported (Amended) by the Yeas and Nays: 59 - 1.

    Financial Services Committee
  12. Oct 12, 2017Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  13. Oct 11, 2017Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  14. Jul 12, 2017Committee

    Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.

    Consumer Protection and Financial Institutions Subcommittee
  15. Apr 26, 2017IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  16. Apr 26, 2017IntroReferralIntro-H

    Introduced in House

  17. Apr 26, 2017IntroReferral1000

    Introduced in House

Passed House amendedNov 7, 201736

Clarifying Commercial Real Estate Loans

(Sec. 2) This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.

An HVCRE ADC loan is a one that: (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.

An HVCRE ADC loan does not include financing for a one- to four-family residential property, agricultural land, real property that would qualify as an investment in community development, existing income-producing real property secured by a mortgage, or certain commercial real-property projects. Furthermore, such a loan does not include any loan made prior to January 1, 2015.

A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, or improvement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.

Reported to House with amendment(s)Nov 6, 201717

Clarifying Commercial Real Estate Loans

(Sec. 2) This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.

An HVCRE ADC loan is a one that: (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.

An HVCRE ADC loan does not include financing for a one- to four-family residential property, agricultural land, real property that would qualify as an investment in community development, existing income-producing real property secured by a mortgage, or certain commercial real-property projects. Furthermore, such a loan does not include any loan made prior to January 1, 2015.

A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, or improvement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.

Introduced in HouseApr 26, 2017

Clarifying Commercial Real Estate Loans

This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.

An HVCRE ADC loan is a one that: (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.

An HVCRE ADC loan does not include financing for a one- to four-family residential property, agricultural land, real property that would qualify as an investment in community development, existing income-producing real property secured by a mortgage, or certain commercial real-property projects. Furthermore, such a loan does not include any loan made prior to January 1, 2015.

A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, or improvement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.

Clarifying Commercial Real Estate Loans — Informed