Commercial Group Seeks To Relax 'Skin-In-Game' Rules

Law360, New York (July 19, 2011, 6:12 PM EDT) -- A group representing the commercial real estate industry told federal regulators Monday that proposed risk retention rules requiring issuers to retain 5 percent interest in mortgage-backed securities should preserve flexibility for commercial issuers or risk hurting an already fragile economy.

The CRE Finance Council, an umbrella group representing all participants in the reportedly $3.5 trillion commercial real estate finance market, said in a letter to federal regulators that, for the most part, its membership agreed that issuers of mortgage-backed securities should retain so-called “skin in the...
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