[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4620 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 463
114th CONGRESS
  2d Session
                                H. R. 4620

                          [Report No. 114-597]

    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

                              May 26, 2016

   Additional sponsors: Mr. Messer, Mr. Carney, Mr. Neugebauer, Mr. 
      Huizenga of Michigan, Mrs. Wagner, Mr. Stivers, and Mr. Barr

                              May 26, 2016

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 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.''.
                                                 Union Calendar No. 463

114th CONGRESS

  2d Session

                               H. R. 4620

                          [Report No. 114-597]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                              May 26, 2016

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed