Robert Pittenger: “Today, I rise in support of H.R. 2148, the Clarifying Commercial Real Estate Loans Act. I would also like to thank my…”

“Today, I rise in support of H.R. 2148, the Clarifying Commercial Real Estate Loans Act. I would also like to thank my colleague, Chairman Huizenga, for his leadership on our behalf. This bipartisan legislation makes commonsense reforms to the high volatility commercial real estate loan process and clarifies the existing regulations to help simplify real estate financing in high volatility markets, including economically depressed urban communities. The complexity of the current HVCRE definition, combined with the failure of Federal regulators to clarify and define HVCRE rules and how and where they are to be applied, has made certain that these development loans have become way too expensive. This has increased borrowing costs and reduced credit availability. These failures directly impact local communities. We have seen fewer jobs, less economic growth, and increased costs for community projects, in addition to setbacks for local banks and developers. My bipartisan legislation addresses many of these concerns by broadening the types of equity the developer may place towards the heightened risk requirements of an HVCRE loan. We also clarify which types of loans should and should not be classified as HVCRE. We must codify and improve the HVCRE rules to ensure market and industry stability. Mr. Speaker, I thank Congressman David Scott, Congresswoman Carolyn Maloney, and Ranking Member Waters, who actively worked with me on this important legislation.…”