CREFC Submits Statement to Congressional Hearing

Joint Trade Letter on Housing Legislation

FinCEN Updates: Beneficial Ownership and GTOs

Policy and Capital Markets Briefing - April 30, 2024

Policy and Capital Markets Briefing

 highlight key news items of interest to the CRE Finance industry. Click the links to learn more.

Welcome to the April 30 edition of CREFC’s 

Policy and Capital Markets Briefing (the ‘PCM’)

. As always, we welcome your feedback and suggestions on how we can continue to provide you with weekly insights into events and developments on Capitol Hill and in the Capital Markets.

will hold a hearing today examining the CRE market. CREFC submitted a statement for the record ahead of the 

CREFC joined 20 housing and real estate trade organizations

 in urging Congress to pass legislation that creates and supports affordable housing development. In a letter to lawmakers, housing and real estate trade organizations highlighted a number of bills focused on increasing housing supply, both affordable and market rate, through direct investment, public-private partnerships, lowering regulatory burdens, and tax incentives.

voted to pass Congressional Review Act (CRA) resolutions that would nullify regulations from the Consumer Financial Protection Bureau, the Securities and Exchange Commission, and other financial regulators. 

The Treasury Department’s Financial Crimes Enforcement Network 

(FinCEN) in recent weeks unveiled updates to 

 on Beneficial Ownership Information (BOI) Reporting and issued the periodic renewal of 

 (GTOs) for certain all-cash residential real estate transactions.

2020 election which involved a record level of spending

. In another busy week, two private-label transactions were priced. Year-to-date private-label CMBS and CRE CLO issuance totals $25.7 billion, well ahead of the $8.9 billion for the same period last year. According to 

, despite the recent increase in interest rates, the private-label CMBS pipeline continues to grow, with over $11 billion of private-label issuance expected to price over the next month or so.

Thanks for being a CREFC Member and enjoy this edition of the PCM.

CREFC submitted a statement for the record ahead of a House Oversight and Accountability Subcommittee on Health Care and Financial Services hearing titled “

Health of the Commercial Real Estate Markets and Removing Regulatory Hurdles to Ensure Continued Strength

The hearing is today at 2:00pm ET and can be 

The subcommittee chair’s press release outlines the goals of the hearing: 

 provides a brief market update and highlights market and regulatory challenges for CRE. 

On Monday, April 29, CREFC joined 20 housing and real estate trade organizations in a letter to Congress urging action on legislation to create and support affordable housing development. 

Many Americans are unable to rent or buy homes due to increased housing costs. These rising costs are driven by a lack of supply created by barriers to development that increasingly make it extremely challenging, particularly a price affordable to low- and middle-class families.

The letter highlights a number of bills focused on increasing housing supply, both affordable and market rate, through direct investment, public-private partnerships, lowering regulatory burdens, and tax incentives.

CREFC and the signatories will highlight the legislation to members of Congress and the Biden Administration. While the outlook for enactment of any legislation ahead of the November election is slim, sustained advocacy can help bills advance in the lame-duck session or a future Congress. 

the House Financial Services Committee voted to pass, along party lines, 

Congressional Review Act (CRA) resolutions

 that would nullify regulations from the Consumer Financial Protection Bureau, the Securities and Exchange Commission, and other financial regulators. 

. The CRA allows a new Congress to nullify rules issued within the last 60 legislative days of the prior Congress. The exact calendar for this period is somewhat of a confusing calculus, but will likely start in May or June 2024 for the current Congress. 

are subject to presidential vetoes, we see more of this activity in potential presidential transition years.

The application of the CRA does not only undo these rules, but also prevents regulators from issuing similar ones, thereby reining in regulatory influence in certain areas. 

Employing the CRA to attempt to nullify rules can also be a messaging tool. According to 

 often see an increase in CRA resolutions, current activity has eclipsed typical activity. 

, uncertainty regarding financial regulation has grown while the courts weigh in on an increasing number of final regulations. The heightened use of the CRA will likely add to that uncertainty.

 membership apprised of any significant regulatory developments, including related litigation or CRA application. Please contact 

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in recent weeks unveiled updates to 

FinCEN oversees and implements many of the anti-money laundering (AML) and illicit financial activity regulations and policies. 

 renewed its GTO that requires title companies to collect beneficial ownership information on legal entities party to all cash residential real estate transactions in certain metropolitan areas. 

FinCEN updated and issued additional responses in its BOI Frequently Asked Questions.

Notably, the agency outlined timing for access to the federal database for federal agencies and financial institutions. FinCEN will take a phased approach to providing access to beneficial ownership information, but financial institution access is more than a year out.

The BOI reporting requirements are currently in legal jeopardy as a federal district court in the Northern District of Alabama ruled that the Corporate Transparency Act exceeds the Constitution’s limits. The Justice Department is appealing the ruling, and FinCEN has suspended compliance obligations just for the parties to the lawsuit. 

This week, a number of hearings are being held by the Financial Services and Tax Committees. As covered above, a House Oversight subcommittee also will have a hearing on commercial real estate.

The 2024 Election is shaping up to be one of 

the most expensive campaign seasons in history,

2020 election that involved a record level of spending

 Election spending is skyrocketing, from $6.5 billion in 2016 to $14.4 billion in 2020 and an expected $15.9 billion in 2024. The amount raised by each party, how early funds are raised, and how quickly they are spent can tell us a great deal about the standings of various political races, beyond the polling.

While there is a large amount of media focus on the financial advantage for Democrats, money does not always result in a victory.

, a lack of funds can limit a candidate’s ability to travel, make expensive ad-buys, and organize voter registration and engagement. Fundraising for down-ballot Senate and House races can be even more crucial, as presidential campaigns receive much more media coverage.

Where does the 2024 Presidential election stand?

The race will once again come down to the following seven states: Michigan, Pennsylvania, Wisconsin, Georgia, Arizona, North Carolina, and Nevada. All of these states were decided by a margin of 3% or less in the 2020 election, with Arizona and Georgia being decided by less than 0.5%. 

 has Biden and Trump within 5% of each other in these states.

Both of the Presidential campaigns as well as Congressional campaigns are raising record amounts. The Biden campaign and the 

Democratic National Committee (DNC) raised $90 million in March

 on fundraising has largely focused on Biden’s significant and likely insurmountable cash advantage over the Trump campaign.

The chart below displays each party’s committee fundraising totals as well as their spending.

https://ballotpedia.org/Party_committee_fundraising,_2023-2024

 The election to control the House and the Senate is going to be extremely close and any majority won by either party will likely only be by a handful of seats.  

If you live in or near any of the seven swing states, you will almost certainly see and hear the results of all this fundraising this fall. Massive ad-buys are expected to surge after this summer’s party nominating conventions.

 for a Blackstone partnership on a portfolio of nine Great Wolf Lodge resorts across nine states.

 backed by 39 five-year loans secured by 71 properties. Multifamily (31.7%) comprises the largest property concentration, followed by industrial (15.5%) and office (15.5%).

 with statistics covering the economy and the CRE debt capital markets 

: Keep up with the CRE Finance Council’s robust program schedule. Below is a quick look at just some of our upcoming events For a full list click 

CMBS 201 - Complex Loan Structures and Subordinate Debt

(An in-person event at Juniper Bar, 237 W 35th St, New York, NY)

Influence & Persuasion: Increasing Your Impact 

Shuffling the Deck, Hot Strategies for Expanding the Capital Stack to Deliver Rescue Funding

 (An in-person event at The Peachtree Club, 999 Peachtree Street, NE Suite 2800 Atlanta, GA)

CREFC’s Policy and Capital Markets Briefing provides CREFC members with insights and analyses on events impacting the industry. If you have any questions, please contact us at 