Nareit and 10 other industry groups, including the U.S. Chamber of Commerce and The Real Estate Roundtable, wrote to the financial regulators this week, requesting clarification that regulatory guidance previously issued in April—directing banks to work “prudently” with credit worthy borrowers and to exercise appropriate discretion—applies to credit provided to non-bank lenders via warehouse lines, repurchase agreements secured by multifamily and commercial real estate loans and, other commercial mortgage-related borrowings.
The letter notes that bank liquidity provided to non-bank lenders through these borrowings permits the extension of debt capital to the commercial and multifamily marketplace, which represents a vital component of the U.S. economy, responsible for some $1.14 trillion in commercial real estate development and operations, or 18.1% of GDP.
(Contact: Victoria Rostow at vrostow@nareit.com)