Clarifying Commercial Real Estate Loans
This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.
An HVCRE ADC loan is a one that: (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.
An HVCRE ADC loan does not include financing for a one- to four-family residential property, agricultural land, real property that would qualify as an investment in community development, existing income-producing real property secured by a mortgage, or certain commercial real-property projects. Furthermore, such a loan does not include any loan made prior to January 1, 2015.
A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, or improvement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.
| Action Date | Type | Text | Source |
|---|---|---|---|
| 2017-11-08 | IntroReferral | Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. | Senate |
| 2017-11-07 | Floor | Motion to reconsider laid on the table Agreed to without objection. | House floor actions |
| 2017-11-07 | Floor | On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8547-8548) | House floor actions |
| 2017-11-07 | Floor | DEBATE - The House proceeded with forty minutes of debate on H.R. 2148. | House floor actions |
| 2017-11-07 | Floor | Considered under suspension of the rules. (consideration: CR H8547-8550) | House floor actions |
| 2017-11-07 | Floor | Mr. Huizenga moved to suspend the rules and pass the bill, as amended. | House floor actions |
| 2017-11-06 | Calendars | Placed on the Union Calendar, Calendar No. 288. | House floor actions |
| 2017-11-06 | Committee | Reported (Amended) by the Committee on Financial Services. H. Rept. 115-392. | House floor actions |
| 2017-10-12 | Committee | Ordered to be Reported (Amended) by the Yeas and Nays: 59 - 1. | House committee actions |
| 2017-10-12 | Committee | Committee Consideration and Mark-up Session Held. | House committee actions |
| 2017-10-11 | Committee | Committee Consideration and Mark-up Session Held. | House committee actions |
| 2017-07-12 | Committee | Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral. | House committee actions |
| 2017-04-26 | IntroReferral | Referred to the House Committee on Financial Services. | House floor actions |
| 2017-04-26 | IntroReferral | Introduced in House | Library of Congress |