IB 

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 


srobinson on DSK5SPTVN1PROD with BILLS
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•HR 4620 RH

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. 


srobinson on DSK5SPTVN1PROD with BILLS
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•HR 4620 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preserving Access to 

5 CRE Capital Act of 2016’’. 

6 SEC. 2. EXEMPTION FOR CERTAIN COMMERCIAL REAL ES7 TATE LOANS FROM RISK RETENTION RE8 QUIREMENTS. 

9 Section 15G of the Securities Exchange Act of 1934 

10 (15 U.S.C. 78o–11) is amended— 

11 (1) in subsection (c)(1)(E)(ii), by striking ‘‘re12 tention of the first-loss position by a third-party pur13 chaser that’’ and inserting ‘‘retention of the first14 loss position by a one or two party third-party pur15 chaser, who may hold the retention obligation in ei16 ther a senior-subordinate structure or pari passu, 

17 provided that each’’; and 

18 (2) in subsection (e)— 

19 (A) by redesignating paragraph (6) as 

20 paragraph (7); and 

21 (B) by inserting after paragraph (5) the 

22 following new paragraph: 

23 ‘‘(6) EXEMPTION FOR CERTAIN COMMERCIAL

24 REAL ESTATE LOANS.— 


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•HR 4620 RH

1 ‘‘(A) EXEMPTION FOR SINGLE LOAN COM2 MERCIAL REAL ESTATE SECURITIZATION.—A 

3 securitization of a single commercial real estate 

4 loan or a group of cross-collateralized or cross5 defaulted commercial real estate loans that rep6 resent the obligation of one or more related bor7 rowers secured by one or more commercial 

8 properties under direct or indirect common 

9 ownership or control is exempt from the risk re10 tention requirements of this section. 

11 ‘‘(B) EXEMPTION FOR QUALIFIED COM12 MERCIAL REAL ESTATE LOANS.— 

13 ‘‘(i) REGULATIONS REQUIRED.—The 

14 Federal banking agencies and the Commis15 sion shall jointly maintain regulations to 

16 exempt qualified commercial real estate 

17 loans from the risk retention requirements 

18 of this section. 

19 ‘‘(ii) STANDARDS FOR REGULA20 TIONS.—The regulations issued under 

21 clause (i) shall— 

22 ‘‘(I) include the requirements 

23 under which interest-only loans may 

24 be exempt from the risk retention re25 quirements of this section; 


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•HR 4620 RH

1 ‘‘(II) not impose any term re2 quirements on the length of a quali3 fied commercial real estate loan; 

4 ‘‘(III) if an amortization require5 ment is included, not impose an amor6 tization schedule of less than 30 

7 years; and 

8 ‘‘(IV) not impose separate loan9 to-value ratio caps on qualified com10 mercial real estate loans that are doc11 umented with appraisals that utilize 

12 lower capitalization rates than other 

13 loans.’’. 


srobinson on DSK5SPTVN1PROD with BILLS
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 

poses. risk retention requirements, and for other purexempt certain commercial real estate loans from 

MAY 26, 2016 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


srobinson on DSK5SPTVN1PROD with BILLS