CMBS Breaths Sigh of Relief Over Mortgage Rule Re-Proposal

WASHINGTON, DC-Much has been made of the fact that one of the more onerous requirements under Dodd-Frank–at least as far as the real estate industry was concerned—has been rejiggered under a re-proposal issued by a huddle of regulators this week. The new proposal will have a huge impact on the residential mortgage industry and its related securitization activities and for that reason, the change has been both celebrated and vilified.  At the same time, a less noticed–but still huge in its impact–rule change was also proposed for the CMBS space.

The proposal was issued jointly by the Board of Governors of the Federal Reserve System, the Department of Housing and Urban Development, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.