CMBS Scrambles to Comply with New Regulatory Regime
By
Paul Fiorilla, Yardi Matrix
New York—The blizzard of new regulations on commercial mortgage programs that are in the process of taking effect took center stage at this week’s CRE Finance Council annual conference in New York. However, sentiment about which of the new rules may wind up having the biggest impact on the sector appears to be shifting.
For most of the last six months, the top concern of the CMBS market was the “risk-retention” rule mandated by the Dodd-Frank Act that was approved by a host of regulators, including the Federal Reserve and Securities and Exchange Commission. But now some of the concerns about risk-retention are taking a back seat to some of the other regulations dealing with trading and the process of building pools in terms of the impact on pricing and liquidity in the market…
