[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4620 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 4620
To amend the Securities Exchange Act of 1934 to exempt certain
commercial real estate loans from risk retention requirements, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2016
Mr. Hill introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Securities Exchange Act of 1934 to exempt certain
commercial real estate loans from risk retention requirements, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preserving Access to CRE Capital Act
of 2016''.
SEC. 2. EXEMPTION FOR CERTAIN COMMERCIAL REAL ESTATE LOANS FROM RISK
RETENTION REQUIREMENTS.
Section 15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
11) is amended--
(1) in subsection (c)(1)(E)(ii), by striking ``retention of
the first-loss position by a third-party purchaser that'' and
inserting ``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, provided that each''; and
(2) in subsection (e)--
(A) by redesignating paragraph (6) as paragraph
(7); and
(B) by inserting after paragraph (5) the following
new paragraph:
``(6) Exemption for certain commercial real estate loans.--
``(A) Exemption for single loan commercial real
estate securitization.--A 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 one or more
commercial properties under direct or indirect common
ownership or control is exempt from the risk retention
requirements of this section.
``(B) Exemption for qualified commercial real
estate loans.--
``(i) Regulations required.--The Federal
banking agencies and the Commission shall
jointly maintain regulations to exempt
qualified commercial real estate loans from the
risk retention requirements of this section.
``(ii) Standards for regulations.--The
regulations issued under clause (i) shall--
``(I) include the requirements
under which interest-only loans may be
exempt from the risk retention
requirements of this section;
``(II) not impose any term
requirements on the length of a
qualified commercial real estate loan;
``(III) if an amortization
requirement is included, not impose an
amortization schedule of less than 30
years; and
``(IV) not impose separate loan-to-
value ratio caps on qualified
commercial real estate loans that are
documented with appraisals that utilize
lower capitalization rates than other
loans.''.
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