Yesterday House Representatives John Adler (D-NJ), John Campbell (R-CA), Dennis Moore (D-KS) and Gary Miller (R-CA) worked on an amendment offered by Representatives Walt Minnick (D-ID) and Melissa Bean (D-IL) to the House Financial Services Committee financial regulatory reform bill that passed the Committee unanimously.

The amendment reduces the maximum 'retention' or 'skin-in-the-game' requirement from 10% to 5%.   In a press release this morning, the Commercial Mortgage Securities Association said that the new language of the bill customizes retention provisions to reflect the unique nature of the CMBS sector, which uses a third-party investor who buys the first-loss position and re-underwrites all loans in the pre-issuance period.

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