By a vote of 67-31, the Senate approved a bipartisan regulatory relief bill, the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), that modifies a number of regulations from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank Act).
Perhaps the most important provision in the bill for the multifamily industry is the inclusion of an amendment addressing the shortcomings of existing banking regulations on High Volatility Commercial Real Estate (HVCRE) loans. The amendment mirrors an NMHC/NAA-supported bill, the Clarifying Commercial Real Estate Loans Act (HR. 2148), that was passed by the House with strong bipartisan support.
In addition to the HVCRE provision, the legislation also includes other provisions that could impact the apartment industry, including a provision that would allow Fannie Mae and Freddie Mac to use alternative credit scoring models that could take into account other forms of payments such as rents and utilities.
The Senate bill must now be reconciled with the House. Chairman Hensarling has said that he believes the bill does not go far enough and may seek to put his own stamp on the bill. NMHC/NAA will continue to monitor and participate in negotiations on the final Dodd Frank regulatory bill
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