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Thursday, 12 October 2017

Proposed Legislation Clarifying HVCRE Definition Clears First Hurdle

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Commercial Real Estate Direct Staff Report

Proposed legislation that would ease rules that since the Great Financial Crisis have impacted construction lending by banks has passed its first hurdle.

H.R. 2148, the Clarifying High-Volatility Commercial Real Estate Loans bill, which was introduced last April by Reps. Robert Pittenger (R-N.C.), and David Scott (D-Ga.), passed the House Financial Services Committee by a 59-1 vote. It had 14 co-sponsors. It now goes before the full House of Representatives, where it's expected to pass, and the Senate.

The rule would spell out exactly what an HVCRE, or high-volatility commercial real estate loan, is: a "credit facility secured by land or improved real property that … finances or has financed the acquisition, development or construction of real property," or funds the acquisition, development or improvements to a property to make it into "income-producing real property, and is dependent upon future income or sales proceeds from, or refinancing of, such real property for the repayment of such credit facility."

It also would exempt from the HVCRE classification - which increases by 50 percent the risk weighting of such a loan held on a bank's balance sheet - loans used to acquire or finance...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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