Posted on March 27, 2018
Senators took a positive step last week, with an overwhelming vote to begin reforming the 2010 Dodd-Frank banking law. The measure, S. 2155, passed on a 67-31 vote, with support from members on both sides of the political aisle.
A key component of the reform measure is a NAIOP-supported provision aimed at improving the regulatory process involving High Volatility Commercial Real Estate (HVCRE) loans. The HVCRE rule, which has resulted in confusion among lenders and borrowers, was originally put into place by the Basel III committee on international banking supervision and was adopted by U.S. banking regulators.
“The current HVCRE rule is overly broad and forces banks to hold unreasonably high capital levels before they may make certain loans,” said Thomas Bisacquino, NAIOP president and CEO. “We commend the Senate for passing a measure addressing the problem by providing greater clarity on the HVCRE issue.”