On October 22, 2014, the federal regulatory agencies responsible for implementing regulations under Dodd-Frank risk-retention rules for CMBS transactions finalized the rules. In a nutshell, the rules will effectively apply to the riskiest 5% of each CMBS issue. With CMBS issues averaging roughly $1 … [Read more...] about 8.4.15: Risk Retention Rules for CMBS Not Far Away
5.29.15: New Risk Weight Rules Hurt Banks Investing in CMBS
New risk weight rules, known as Basil III, are having a significant negative impact on banks’ required capital allocation for investment in CMBS securities rated below AAA. Previous to impending Basil III capital rules, CMBS securities rated from AAA to AA- had a 20% risk weighting. When Basil III … [Read more...] about 5.29.15: New Risk Weight Rules Hurt Banks Investing in CMBS
7.3.13: New SBA Change-of-Ownership Rules
On July 1, 2013, the Small Business Association (SBA) released a revision to SOP 50 10 5(E) that revised and clarified the SBA’s requirements for financing change-of-ownership transactions with SBA-guaranteed loans. Prior to this revision, the SBA had restricted SBA financing for change-of-ownership … [Read more...] about 7.3.13: New SBA Change-of-Ownership Rules