WASHINGTON, DC–A Senate bill may give banks and their borrowers some relief from the High Volatility Commercial Real Estate Loans, or HVCRE, rule.
It is possible that the bipartisan Clarifying Commercial Real Estate Loans (S. 2405), co-sponsored by Senators Tom Cotton (R-AR) and Doug Jones (D-AL), will also reform this rule, a source tells us.
The HVCRE rule, promulgated by Basel III, went into effect in 2016. It established a new risk-weight category requiring banks to hold more capital — 150% or one and half times as much — for such loans.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
