As part of the Dodd-Frank Act (summaries and my prior comments on what I call "delegated legislative authority"), the topic of risk retention or "skin in the game" plays a pivotal role in the revival of the CMBS lending market (or "CMBS 2.0"). The question causing heartburn is this: will CMBS loan originators be required… Continue Reading
Tag Archives: FAS 167
Financial Reform Up-date: Risk Retention, FAS Standards & Covered Bonds
Posted in Covered Bonds, Good Times for Lenders, Market TrendsHere is an up-date from the CREF-C on the joint committee charged with reconciling the House and the Senate financial reform bills. The summary focuses on three topics: risk retention in CMBS deals FAS rules 166 and 167 covered bonds The CREF-C up-date: To begin, House Chairman Barney Frank (D-Mass.) presented a "House offer" that would… Continue Reading
CMBS Scorecard: Financial Reform Bill – Only A Band Aid For Now; Covered Bonds Later?
Posted in Good Times for Lenders, Market Trends(Part of my series on the capital markets. Use the term "scorecard" in the search function on the lower right side of this page to find other postings in this series.) On December 11, the US House of Representatives passed the financial reform bill. As I’ve noted before, "tying" the loan originator or some other responsible party… Continue Reading