"With very minimal cost to the government--only $11 million over the next 10 years--this legislation will significantly improve the flow of capital to commercial projects throughout the country," says Daniel Phelan, MBA Commercial Real Estate/Multifamily Finance Board of Governors vice chair. "With its passage, property will be improved, businesses enhanced and jobs created."

Speaking to GlobeSt.com, MBA senior vice president for government affairs Kurt Pfotenhauer further explains that, "the net effect of the bill would be to make REMIC a more flexible tool without changing its status."

To get an idea of how many projects the legislation would affect, Pfotenhauer notes that by the end of 2003, commercial mortgage backed securities totaled $360 billion, or 20% of the commercial real estate development market. And $18 billion was issued in the first quarter of 2004, the vast majority of which was done through REMIC execution. "The legislation is just making sure REMIC rules keep pace with current transactional needs. We expect the bill will encourage property renovation and spur new construction."