News Archive

News

CREFC Publishes C-PACE Primer

January 9, 2025

The CRE Finance Council on January 9 published a comprehensive Commercial Property Assessed Clean Energy (CPACE) Primer to serve as a valuable resource for our members.

The Primer provides an in-depth overview of the key features, stakeholders, and market trends associated with C-PACE financing, one of the tools used to drive sustainability and resiliency in the CRE sector.

Key topics include:

  • Financing Mechanics: Understanding how C-PACE enables CRE owners to implement energy efficiency, renewable energy, and resiliency upgrades.
  • Stakeholder Roles: A breakdown of responsibilities for property owners, mortgage lenders, legal counsel, and program administrators.
  • Market Trends: Analysis of the growing C-PACE market, with over $7 billion in cumulative financing and nearly $2 billion in 2023 alone.
  • Important Considerations: Insights into underwriting concerns, lease implications, and compatibility with CMBS transactions.

Why it matters: As the CRE industry continues to prioritize sustainability, C-PACE financing is one avenue for property owners to enhance asset performance while meeting environmental and resiliency goals.

  • This Primer equips CREFC members with the insights needed to navigate and leverage this growing market segment effectively.

CREFC would like to thank the group of investors, bankers, rating agencies, lawyers, and lenders who contributed to the development of the Primer.

Please contact Sairah Burki (sburki@crefc.org) with questions.

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
CREFC Publishes C-PACE Primer
January 09, 2025
The CRE Finance Council on January 9 published a comprehensive Commercial Property Assessed Clean Energy (CPACE) Primer to serve as a valuable resource for our members.

News

Treasury and FHFA Agree on Administrative Logistics for GSE Reform

January 7, 2025

The Treasury Department
and Federal Housing Finance Agency (FHFA) announced on Jan. 2 an agreement that would give Treasury the ability to block any proposal to remove Fannie Mae and Freddie Mac (the Enterprises) from conservatorship.

  • The agreement restores Treasury’s previous right to consent to a release of the GSEs from conservatorship.
  • Under a separate side letter from FHFA to Treasury, FHFA will solicit public input on the potential impacts on the housing market and the GSEs, before releasing the GSEs from conservatorship.
  • Additionally, Treasury will consult with the President prior to consenting to a release of the GSEs from conservatorship.

Many market participants believe that President-Elect Trump will prioritize removing the Enterprises from conservatorship.

  • This could be effected via either legislatively or administratively, with the FHFA declaring the Enterprises ready for exit.

What they’re saying: According to TD Cowen’s Jaret Seiberg:

We see this as an effort by the Democrats to ensure Donald Trump owns any negative outcome from ending the conservatorships of Fannie and Freddie as it deprives Team Trump from saying the independent regulator made the decision to proceed with recap and release.”

However, the Trump administration could amend or nullify this agreement. According to Jonathan McKernan, a commissioner at the Federal Deposit Insurance Commission (FDIC) and potential contender for new FHFA director, the agreement marked a:

“Bad day for financial stability and protecting taxpayers against bailouts . . . even if all easily reversed.”

What's next: CREFC will keep a close watch on developments related to GSE reform, ensuring that our members are able to comment on potential paths for an exit from conservatorship.

Contact Sairah Burki (sburki@crefc.org) or David McCarthy (dmccarthy@crefc.org) with questions.
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Treasury and FHFA Agree on Administrative Logistics for GSE Reform
January 07, 2025
The Treasury Department and Federal Housing Finance Agency (FHFA) announced on Jan. 2 an agreement that would give Treasury the ability to block any proposal to remove Fannie Mae and Freddie Mac (the Enterprises) from conservatorship.

News

On Again, Off Again: Corporate Transparency Act Cases 

January 7, 2025

A flurry of court decisions in late December once again left the Corporate Transparency Act (CTA) and the Beneficial Ownership Information (BOI) reporting requirements in limbo ahead of the January 2025 filing deadline for existing legal entities.

Why it matters: Amid the decisions, Treasury’s Financial Crimes Enforcement Network (FinCEN) has paused BOI reporting requirements. Click here for additional background on the litigation. The latest procedural history is summarized on FinCEN’s website below:

  • On Tuesday, Dec. 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., the U.S. District Court for the Eastern District of Texas, issued an order granting a nationwide preliminary injunction. The Treasury, via the Department of Justice, appealed that decision.
  • On Dec. 23, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction.
  • However, on Dec. 26, a different Fifth Circuit panel issued an order vacating the Court’s Dec. 23 order granting a stay of the preliminary injunction. On Dec. 31 the Department of Justice, on behalf of the Treasury, sought a stay of the injunction pending the ongoing appeal from the Supreme Court of the United States.
  • The injunction issued by the district court in Texas Top Cop Shop, Inc. is once again in effect.

What’s next: The Supreme Court is likely to have the final say on the preliminary injunction and the constitutionality of the CTA. But changes in Congress and the administration could alter course, as there is both bipartisan support and frustration with the CTA.

  • The original legislation was enacted in 2021 with broad bipartisan support as a measure to streamline BOI reporting and combat illicit finance. But FinCEN’s implementation has been rocky and delayed, adding to frustrations among some of the Act’s supporters.
  • The original year-end 2024 government funding bill, torpedoed by Elon Musk, contained a provision that would have extended the CTA compliance deadline. That extension was not included in the slimmed-down version of the bill.

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
On Again, Off Again: Corporate Transparency Act Cases
January 07, 2025
A flurry of court decisions in late December once again left the Corporate Transparency Act (CTA) and the Beneficial Ownership Information (BOI) reporting requirements in limbo ahead of the January 2025 filing deadline for existing legal entities.

News

Congressional Outlook: Reconciliation Paths 

January 7, 2025

Senate Republicans officially took control of the chamber on Jan. 3, and House Republicans re-elected Speaker Mike Johnson (R-LA) on the first ballot after some initial internal sparring among Republican lawmakers.

Why it matters: With the speakership race out of the way, lawmakers now will chart key legislative priorities to address ahead of President-Elect Donald Trump’s inauguration on Jan. 20. Immigration, energy, and tax are the top priorities, and policymakers are jockeying on how to structure legislative vehicles amidst narrow congressional majorities.

What they’re saying: A key question is whether Republicans will move their top priorities in one or two reconciliation bills. Recall that reconciliation is a legislative process that allows the Senate to consider certain bills (tied to spending) with a simple majority rather than a 60-vote threshold.

  • The current plan points to one reconciliation bill encompassing tax, border, energy, and a debt ceiling increase. Part of the calculus is to craft a bill addressing key campaign promises and priorities to ensure Republican support.
  • Senate Majority Leader John Thune (R-SD) said late last year that Trump advisors and the Senate would move two reconciliation bills, first immigration/energy and then tax. House Ways and Means Chairman Jason Smith (R-MO) pushed back against the two bills, instead arguing for one bill encompassing all priorities.
  • Proponents of two bills argue that border/energy should go first for easy and early wins, while tax should be separate due to its complexities.
  • Trump has changed course on this posting Sunday for “one powerful bill,” but kept his option open for two bills in an interview on Monday morning.

The big picture: Both paths will be politically challenging in a narrow trifecta in which House Republicans can lose one or two votes at most.

  • Reconciliation processes involve complex legislative procedures where committees propose instructions on modifying federal inlays, outlays, and the debt limit.
  • Just reauthorizing expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) will have budgetary costs in the trillions of dollars. But with additional priorities — including state and local tax (SALT) reform, lower corporate rates, and other tax cuts — the “cost” of the bill would increase.
  • The GOP is looking to cut some spending via reconciliation, but the politically palatable cuts are unlikely to approach anything close to the “cost” of the bill, which may be an issue for deficit hawks.
  • Tariffs will be part of the calculus, but Trump is likely to implement those outside of the legislative process using executive authority.

What’s next: Speaker Johnson has set an ambitious agenda with budget instructions passed in February with a House-passed bill by early April and the final legislation on Trump’s desk by the end of April. He acknowledged that the timeline may slip.

Contact David McCarthy (dmccarthy@crefc.org) with questions. 

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Congressional Outlook: Reconciliation Paths
January 07, 2025
Senate Republicans officially took control of the chamber on Jan. 3, and House Republicans re-elected Speaker Mike Johnson (R-LA) on the first ballot after some initial internal sparring among Republican lawmakers.

News

Capital Markets Update Week of 1/7

January 7, 2025

2024 Issuance Recap

N/A

 

  • Private-Label: 2024 CMBS and CRE CLO issuance totaled $112.8 billion, 145% ahead of the $46 billion in issuance for 2023 and 12% higher than the $100.5 billion in 2022.
  • Agency: 2024 Agency issuance totaled $124.1 billion, 3% higher than the $120 billion in 2023 and 24% lower than the $162.4 billion in 2022.

The Economy, the Fed, and Rates…

Economic Data

  • Initial Jobless Claims Show Labor Market Resilience: Initial jobless claims declined to 211,000 in late December 2024, reaching an eight-month low, signaling resilience despite the holiday-season volatility. Continuing claims, while trending higher earlier, also fell to a three-month low, indicating a less tight labor market but not one in distress. The unemployment rate stood at 4.2% in November, with December data due on January 10.
  • Manufacturing Activity Shows Mixed Signals: The ISM Manufacturing PMI rose to 49.3 in December, the highest level since March, though still indicating contraction. The improvement was driven by increased production and accelerating new orders, suggesting potential stabilization in the sector.
  • Mortgage Rates Approach Critical Level: Home mortgage rates approached 7% again, threatening to squeeze buyers. The average 30-year mortgage rate rose to 6.91% as of January 2, potentially exacerbating the ongoing "lock-in" effect in which homeowners with low-rate mortgages are reluctant to move.
  • Consumer Resilience through 2024: The economy defied expectations for a slowdown throughout 2024, with Bloomberg Economics estimating household outlays advanced 2.8% - faster than in 2023 and nearly double their projection at the start of the year. However, pandemic savings have largely been exhausted, and spending is increasingly driven by higher-income households benefiting from wealth effects in housing and stock markets.

Federal Reserve Policy

  • Fed Officials Signal Continued Vigilance: Despite three rate cuts in 2024 totaling 100 basis points, Fed officials emphasize the fight against inflation isn't complete. Core PCE inflation stands at 2.8%, still above the Fed's 2% target. Fed Governor Adriana Kugler stated explicitly:

"We are fully aware that we're not there yet... No one is popping Champagne anywhere - not close to us." 

  • Housing Inflation Remains Key Concern: Officials are particularly focused on housing inflation, which measured 4.8% year-over-year in November despite showing month-to-month improvement. The situation is complicated by what Kugler describes as the "unusual" dynamic of homeowners holding onto low-rate pandemic-era mortgages.

Treasury & Bond Markets

  • Treasury Yields Defy Rate Cut Impact: Despite three Fed rate cuts since September, the 10-year Treasury yield has climbed ~90 basis points since the initial easing move (ending 2024 at 4.57%). Market forecasts show divergence, with the median analyst prediction expecting yields to fall to 4.15% by end-2025, while market-implied forecasts suggest 4.67%.
  • Debt Sustainability Concerns Mount: The federal deficit reached $1.8 trillion (over 6% of GDP) in fiscal 2024, matching World War II-era debt-to-GDP levels. With nonpartisan CBO projections showing continued high deficits and potential additional tax cut costs under the incoming administration, analysts increasingly warn about risks to America's last remaining triple-A credit rating.
  • Tight Corporate Bond Spreads Persist: Corporate bond valuations have reached their most extreme levels, flashing their biggest warning in almost 30 years as an influx of money from pension fund managers and insurers boosts competition for assets. Spreads, the premium for buying corporate debt rather than safer government bonds, can remain low for a prolonged period, partly because fiscal deficits have made some sovereign debt less attractive. As Christian Hantel of Vontobel notes: 

"You could easily make a call that spreads are too tight, and you must go somewhere else, but that's only part of the story...When you look at history, there are a couple of periods when spreads stayed tight for quite some time. We are in such a regime at the moment."

You can download CREFC’s one-page MarketMetrics with statistics covering the economy and the CRE debt capital markets here.

Contact Raj Aidasani (raidasani@crefc.org) with any questions.
 

Contact  

Raj Aidasani
Managing Director, Research
646.884.7566

N/A
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Capital Markets Update Week of 1/7
January 07, 2025
Private-Label: 2024 CMBS and CRE CLO issuance totaled $112.8 billion, 145% ahead of the $46 billion in issuance for 2023 and 12% higher than the $100.5 billion in 2022.

News

NCREIF and CREFC Release Third Quarter 2024 Debt Fund Aggregate Report 

January 2, 2025

We are pleased to provide you with the NCREIF/CREFC Open-End Debt Fund Aggregate Report for Third Quarter 2024. The full Membership Report is located in the CREFC Resource Center for CREFC Members only. This Snapshot Report is available to the public and also can be found on the CREFC website.

For any questions or suggestions and/or if you wish to become a debt fund contributor to the Aggregate, please contact Lisa Pendergast.

The NCREIF/CREFC Open-End Debt Fund Aggregate

The NCREIF/CREFC Open-End Debt Fund Aggregate is a fund-level aggregate comprising open-end funds that provide credit and financing to commercial real estate owners. This report will be issued in a draft “consultation” format for at least one year to obtain the appropriate level of industry feedback before it is rolled out as an official NCREIF/CREFC product.

About the NCREIF/CREFC Open-End Debt Fund Aggregate

  • Is a project by the industry for the industry that has been in the works for several years with input from NCREIF, CREFC and its members, and data contributing managers, investors, and consultants.
  • Is anticipated to be published quarterly. Results will never reveal individual fund performance.
  • Is NOT a BENCHMARK, yet, but is a major step toward the goal of creating a more focused index/benchmark of funds that meets certain investment inclusion criteria (which are to be determined)
  • Will enhance investors’ interest and understanding of the rewards and risks of private real estate debt funds, which may lead to increased allocations to debt, benefiting managers, investors, and commercial real estate finance industry professionals.
  • Contains funds with various strategies and styles ranging from core to value-add, as reported by the managers. The performance metric is a time-weighted return. The returns are equally weighted across the funds since the aggregate contains a few large funds that would dominate the results if it they were value weighted.
  • Furthers NCREIF’s and CREFC’s missions:
    • CREFC is the trade association for the commercial real estate finance industry. It promotes liquidity, transparency, and efficiency in the commercial real estate finance markets. It does this by developing benchmarks such as the NCREIF/CREFC Open End Debt Fund Aggregate, acting as a legislative and regulatory advocate for the industry, playing a vital role in setting market standards and best practices, and providing education for market participants. Member firms include balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, and rating agencies, among others.
    • NCREIF is a member-driven, not-for-profit association that improves private real estate investment industry knowledge by providing transparent and consistent data, performance measurement, analytics, standards, and education.

Fund Inclusion

Investment Managers must:

  • Offer an open-end debt fund product to institutional investors that includes predominantly private U.S. commercial and multifamily real estate debt. Specifically, 80% of total assets must be invested in private commercial and multifamily debt real estate.
  • Calculate quarterly net asset values and returns on a market-value basis.
  • Agree to submit all requested data and do so within the time frame required.

Funds included have different:

  • Structures, strategies, liquidity provisions, dividend, accounting, and valuation policies, all of which affect performance and comparability. As a result, this product is not a benchmark.

Contact 

Lisa Pendergast
Executive Director
646.884.7570

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
NCREIF and CREFC Release Third Quarter 2024 Debt Fund Aggregate Report
January 02, 2025
We are pleased to provide you with the NCREIF/CREFC Open-End Debt Fund Aggregate Report for Third Quarter 2024.

News

Reporting Guidance for CMBS Trust Holdbacks

December 26, 2024

Overview of Trust Termination Process and Need for Holdbacks

CMBS securitizations have been around for 30 years. The governing securitization servicing document, the Pooling and Servicing Agreement (collectively referred to as the PSA for CMBS conduit transactions, Trust and Servicing Agreement for SASB transactions, and Servicing Agreement for CRE CLO transactions), expressly includes mechanics for the winding down of a trust, but it does not specifically address how the transaction parties are protected from, and reimbursed for, ongoing or anticipated costs and expenses following such wind-down.

The transaction parties in a securitization are hired by the trust on behalf of the certificate holders and have the contractual right to be indemnified by the trust for certain costs, expenses, and liabilities related to each deal party’s actions on behalf of the trust. As a practical matter, the value of the indemnification to the transaction parties is limited to the assets and resources available to the securitization trust. As pool assets dwindle, the value of the indemnification protection afforded to the transaction parties erodes and participants become more exposed to loss.

The use of Holdback Amounts can arise at the disposition of one particular asset or through the final loan liquidation of the trust that may at the time contain more than one asset.

The trust typically unwinds in one of two ways:

  1. A natural pay down of the loan(s); or
  2. election by one of the designated parties to acquire the remaining loans (also called a “clean-up call” or “pool collapse”).

In a natural pay-down of a trust, all of the loans are paid off and the investors receive the distribution of funds via the full payoff of loans and/or through the proceeds returned from the resolution of defaulted loans. In a clean-up call or pool collapse, one of the designated parties to the PSA elects to terminate the trust by purchasing the remaining assets from the trust in accordance with the terms of the PSA.

Whether unwound via natural pay down or a clean-up call, once unwound, the trust will no longer have any assets but is likely to have trailing or contingent liabilities (including, but not limited to, final legal bills, vendor invoices, and ongoing or potential litigation costs). Such amounts are costs and expenses of the trust for which the transaction parties are not liable. It is established servicing standard practice to have transaction parties determine the appropriate Holdback Amounts and report accordingly to investors. 

CREFC IRP - Reporting Holdback Amounts to Investors

The current CREFC® IRP includes data fields to facilitate the reporting of Holdback Amounts to investors when it is tied to a specific loan liquidation. Specifically:

(1) [L116] (Amounts Held Back for Future Payment)

This scenario is typically seen when there are trailing expenses or potential litigation expenses tied directly to the asset being liquidated. The responsible transaction party (master servicer or trustee, as applicable) will report any Holdback Amount under this scenario per the CREFC® IRP for the reporting cycle during which the Holdback Amount was established. Reporting guidelines dictate that the loan level information is not reported in subsequent reporting cycles. As such, the remaining balance should be addressed in the annual deal-level reserve reporting.

At the unwinding of the trust, the transaction parties will incur certain expenses to effectuate the closing of the trust and associated accounts. Typically, these expenses are not significant and are resolved within the 12 months following liquidation of the final asset in the trust. Any remaining funds from the holdback are remitted to the Certificate Administrator for further remittance to certificateholders. There is no currently required additional reporting for these transaction-level Holdback Amounts other than the normal remittance process with the Certificate Administrator.

Due to the sensitive nature of disclosing the amount of estimated litigation exposure or potential settlement amounts, such information would likely constitute privileged information pursuant to the PSA, which generally is not shared with certificate holders or other transaction parties because the disclosure of that information could significantly compromise the trust’s position in litigation and related settlement discussions and also could increase overall trust losses. Inappropriate disclosure has the potential to undermine litigation defenses to the detriment of transaction parties, as well as certificate holders.


Considerations for Holdback Amounts Post-Wind-Down

Once a trust is wound down, there typically has been no additional reporting to investors required under the governing transaction documents. Alternatively, if a trust is wound down but there are material Holdback Amounts, market participants are asking that the transaction party holding such Holdback Amounts provide a deal notice identifying the Holdback Amount to the Certificate Administrator to be posted on the Certificate Administrator’s website and that any additional or outstanding Holdback Amounts after the trust has wound down should be updated, provided to the Certificate Administrator, and posted on the Certificate Administrator’s website on an annual basis until such Holdback Amounts are fully liquidated or disbursed. Such additional reporting would provide transaction parties and investors with heightened transparency regarding material Holdback Amounts, notwithstanding the fact that the trust no longer holds mortgage loan assets or REO property. The CREFC® IRP committee is working on future reporting templates. In the interim it is suggested that the Master Servicer annually provides notice to shareholders of holdbacks in excess of $1,000,000.

Please contact Rohit Narayanan (RNarayanan@crefc.org) with any questions.

 

Contact 

Rohit Narayanan
Managing Director, Industry Initiatives
646.884.7569

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
Reporting Guidance for CMBS Trust Holdbacks
December 26, 2024
Read for reporting guidance for CMBS Trust Holdbacks.

News

CREFC's NOVEMBER 2024 Monthly CMBS Loan Performance Report

December 23, 2024

CRE Finance Council has released a report on CMBS loan performance for November.*

Key takeaways:

DELINQUENCY RATE SURGES ABOVE 6%


  • Conduit/SASB CMBS combined delinquency of 6.40%
    • Delinquency rate has increased in nine of the last 11 months
    • On a YOY basis, the overall combined delinquency rate is up 182 bps (6.40% vs. 4.58% in November 2023)
  • Office delinquency rate surged 101 bps in November to 10.38%, following a similar increase in October
    • Office loans accounted for more than 60% of the net increase in the overall dollar amount of delinquent loans in November
    • Office delinquency rate is up 430 bps YOY
    • Convergence of WFH demand shock, elevated rates (despite year-to-date Fed rate cuts), and a pullback in bank lending will continue to present office financing headwinds
  • November delinquency rate is still 392 bps below the 10.32% peak in June 2020 – the height of pandemic-related lockdowns
  • Loans in special servicing (SS) rose 39 bps to 9.53% in November, second-largest uptick of 2024 after April’s 80 bp increase
    • SS rate is at highest level since April 2021 and has increased every month of 2024; now 275 bps higher than the 6.78% mark at year-end 2023
  • In a report dated 12/6/24, BofA Global Research examined YTD pay-off trends for conduit loans
    • In one analysis, pay-off rates were calculated by property type and loan size; successful pay-off rates decreased as loan size increased, with office loans facing the most significant challenges
    • Among IO loans, only 56% of loans paid off, below the 62% across the overall sample; among amortizing loans, a much higher 81% paid off on time


*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $629B: 56.4% ($354.9B) conduit CMBS, 43.6% ($274.1B) single-asset/single-borrower (SASB) CMBS.

Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
CREFC's NOVEMBER 2024 Monthly CMBS Loan Performance Report
December 23, 2024
CRE Finance Council has released a report on CMBS loan performance for November.

News

Rep. French Hill to Lead House Financial Services Committee

December 17, 2024

Congressman French Hill (R-AR) won a four-way race to become chairman of the House Financial Services Committee (HFSC) in the next Congress. Hill will replace retiring Rep. Patrick McHenry (R-NC) who served as the lead HFSC Republican since 2019 and as chairman for the past two years.

Why it matters: Rep. Hill brings a deep knowledge of financial markets as he takes the committee gavel. He was a founder and CEO of Delta Trust and Banking Corp., and he was Deputy Assistant Secretary of the Treasury for Corporate Finance from 1989 to 1991.

  • Hill was first elected to Congress in 2014 and has served on HFSC in a variety of leadership capacities, including as the current committee vice chair and chair of the Digital Assets Subcommittee.
  • CREFC has a strong relationship with Rep. Hill, who has been a key ally on issues like Basel Capital rules, Conflicts of Interest in Securitization, and 15c2-11.
  • In his pitch for the chairmanship, Hill laid out his “Make Community Banking Great Again” plan, which includes a number of proposals to tailor and reduce regulatory burdens on financial institutions.

Go deeper: The House GOP selects its committee leaders via the Steering Committee, which includes the chamber leadership (Speaker, majority leader, etc.) and other rank-and-file members selected from various regions.

The race to succeed McHenry was among the most closely contested in this cycle as Hill faced off against other senior committee members:

  • Rep. Andy Barr (R-KY) was first elected in 2012 and currently serves as HFSC Financial Institutions Subcommittee Chair;
  • Rep. Bill Huizenga (R-MI) was first elected in 2010 and currently serves as HFSC Oversight Subcommittee Chair; and
  • Rep. Frank Lucas (R-OK) was first elected in 1994 and currently serves as Chairman of the House Space, Science, and Technology Committee. Lucas also had been the lead Republican on the House Agriculture Committee.

What they’re saying: Toward the end of the campaign, insiders saw the race tighten between Hill and Barr, with some expecting Barr to take the gavel given Hill’s close ties to ousted Speaker Kevin McCarthy (R-CA). Barr is also seen as a favorite to succeed Sen. Mitch McConnell (R-KY) should he choose not to run for re-election in 2026.

The bottom line: The HFSC contest was not acrimonious and observers noted that Republicans had strong options in all the candidates. Former HFSC chair Rep. Jeb Hensarling told Politico:

“It was going to be a good day for America and her capital regardless of who was chosen. French Hill will be a fantastic chair. Absolutely fantastic.”

Contact David McCarthy (dmccarthy@crefc.org) with questions. 
 

Contact  

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
Rep. French Hill will lead the HFSC next congress.

Rep. French Hill will lead the House Financial Services Committee starting in January 2025.

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
Rep. French Hill to Lead House Financial Services Committee
December 17, 2024
Congressman French Hill (R-AR) won a four-way race to become chairman of the House Financial Services Committee (HFSC) in the next Congress.

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