Dodd-Frank And Commercial Real Estate
Some experts in the financial services industry, believe that the new Trump administration may change or roll-back a portion of the Dodd-Frank legislation.
Financial institutions, mortgage companies, securitization sponsors, etc. must continue to treat current regulatory requirements as applicable to the business. It is important to differentiate the commitment to protection of consumers in lending and other banking and financial services transactions from commercial lending.
I think we will continue to see a concern for the protection of consumers and the continuation of legislation that provides these protections, both at the state and federal level. However, the question becomes whether rules such as the “credit risk retention rule” which relate to both consumer and commercial securitizations, will be expanded beyond the current legislation.