I 

114TH CONGRESS 

2D SESSION H. R. 4620 

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 

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. 

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— 


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1 (1) in subsection (c)(1)(E)(ii), by striking ‘‘re2 tention of the first-loss position by a third-party pur3 chaser that’’ and inserting ‘‘retention of the first4 loss position by a one or two party third-party pur5 chaser, who may hold the retention obligation in ei6 ther a senior-subordinate structure or pari passu, 

7 provided that each’’; and 

8 (2) in subsection (e)— 

9 (A) by redesignating paragraph (6) as 

10 paragraph (7); and 

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

12 following new paragraph: 

13 ‘‘(6) EXEMPTION FOR CERTAIN COMMERCIAL

14 REAL ESTATE LOANS.— 

15 ‘‘(A) EXEMPTION FOR SINGLE LOAN COM16 MERCIAL REAL ESTATE SECURITIZATION.—A 

17 securitization of a single commercial real estate 

18 loan or a group of cross-collateralized or cross19 defaulted commercial real estate loans that rep20 resent the obligation of one or more related bor21 rowers secured by one or more commercial 

22 properties under direct or indirect common 

23 ownership or control is exempt from the risk re24 tention requirements of this section. 


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1 ‘‘(B) EXEMPTION FOR QUALIFIED COM2 MERCIAL REAL ESTATE LOANS.— 

3 ‘‘(i) REGULATIONS REQUIRED.—The 

4 Federal banking agencies and the Commis5 sion shall jointly maintain regulations to 

6 exempt qualified commercial real estate 

7 loans from the risk retention requirements 

8 of this section. 

9 ‘‘(ii) STANDARDS FOR REGULA10 TIONS.—The regulations issued under 

11 clause (i) shall— 

12 ‘‘(I) include the requirements 

13 under which interest-only loans may 

14 be exempt from the risk retention re15 quirements of this section; 

16 ‘‘(II) not impose any term re17 quirements on the length of a quali18 fied commercial real estate loan; 

19 ‘‘(III) if an amortization require20 ment is included, not impose an amor21 tization schedule of less than 30 

22 years; and 

23 ‘‘(IV) not impose separate loan24 to-value ratio caps on qualified com25 mercial real estate loans that are docVerDate Sep 11 2014 23:04 Feb 26, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4620.IH H4620

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1 umented with appraisals that utilize 

2 lower capitalization rates than other 

3 loans.’’. 

Æ 


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