The CRE Finance Council (CREFC) has developed a set of standards that the organization says can be used immediately in the commercial mortgage-backed securitization (CMBS) market. The standards are the result of a year-long project that focused on loan underwriting, disclosures, and representations and warranties.
Each of the initiatives reflects the consensus views of the organization's entire membership, which includes lenders, issuers, servicers, and loan and bond investors. The goals of the new ‘best practices’ are to provide support to U.S. federal regulators as they work to implement the Dodd-Frank Act, the CREFC says.
"The release of CREFC's best practices is an important and timely milestone in the commercial real estate finance market, a sector that has turned an important corner in 2011," says Lisa Pendergast, president of the CREFC.. "CREFC's members – across all constituencies – have devoted an extraordinary amount of time over the past year to strengthen the market and provide important standards for commercial mortgages.
CREFC's market standards have been formally delivered to the U.S. Treasury Department, the Federal Reserve Board of Governors, the Federal Deposit Insurance Corp., the Securities and Exchange Commission and the Office of the Comptroller of the Currency.
SOURCE: CREFC
