The Commercial Mortgage Securities Association (CMSA) said in a press release that it supports Comptroller of the Currency John Dugan’s stance on the need for a vital and robust securitization market.

The trade group agreed with several of Dugan's assertions that certain accounting and regulatory standards might limit credit availability.

As previously reported by, Dugan said in a speech at the American Securitization Forum  gathering held last week in Washington, D.C. that policy makers should focus reform efforts on improving underwriting standards rather than "skin-in-the game" risk retention proposals.

In its release, the CMSA said it agreed with Dugan’s notion that an examination of each asset type as a means for incentivizing better underwriting might have benefits, specifically since the regulator recognized that risk retention itself might not be the only solution.

The CMSA is still concerned that the risk-based capital changes, Federal Deposit Insurance Corp.-proposed rulemaking and the proposed skin-in-the-game provision could, when combined, impede the recovery of the securitization market.

“We believe the Administration’s proposed new and unprecedented financial reforms must provide certainty and confidence in our markets and support, rather than impede, efforts to restore private lending and investing critical to a commercial real estate recovery,” said Patrick Sargent, CMSA president. "With the number of key distinctions between CMBS and other asset-backed securities, we support OCC Comptroller Dugan in recognizing the prudence required when fashioning broad securitization-related regulatory reforms.”

The CMSA remains engaged in efforts to urge policymakers to ensure that the final regulatory reform package does not negatively impact commercial real estate, but should be customized to reflect the unique nature of the CMBS market.

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