Chief Economist Heidi Learner
WASHINGTON, DC–Earlier this week the House of Representatives passed legislation to loosen Dodd-Frank Act rules for small and midsize banks. On Thursday President Trump signed the measure into law.
The bill had only a tangential effect on commercial real estate — except in one respect, which were the changes to Basel III's High Volatility Acquisition, Development and Construction (HVCRE) financial requirements.
“The main impact on CRE is the improved detail surrounding those circumstances in which banks are required to hold a 150% risk weight (the 12% capital requirement) for CRE loans vs a 100% risk weight (the 8% capital requirement),” Heidi Learner, chief economist at Savills Studley, tells GlobeSt.com.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
