Mortgage banking and real estate trade groups are still hoping they can get a provision for creating a secondary market for commercial real estate mortgages into legislation in Congress, but the possibility seems more likely to arrive in the House bill than it does the Senate.
Mortgage banking lobbyists failed to get a commitment from the Senate Banking Committee to provide for creating the market in the Community Development Banking bill, S. 1275. So they and two real estate trade groups set out to persuade the House Banking Committee.
The House Banking Subcommittee on Economic Growth and Credit Formation heard from the trade groups during mark up of the Business, Commercial, and Community Development Secondary Market Development Act, H.R. 2600, Sept. 23. The bill was introduced by subcommittee chairman Rep. Paul E. Kanjorski, D-pa..
As drawn, the bill would allow any public or private entity that meets the prescribed eligibility standards to qualify for certification and receive waivers from the Treasury exempting it from a wide array of statutes and regulations in order to promote growth of of a more efficient secondary market. The bill also:
* covers businesses of all size and includes community development investments of community development financial institutions;
* would not create a government-sponsored enterprise nor expand the duties of any existing GSE;
* establishes economic and public policy goals for any entity seeking certification.
"Strengthening the secondary market in commercial real estate will foster economic growth, create jobs and add to the financial stability of our lending institutions by increasing the flow of funds through capital markets and fostering liquidity," said Donald B. Susswein, who spoke on behalf of the Mortgage Bankers Association of America, the National Association of Realtors and the National Realty Committee.