US Congress Senate Bill 2405 (Prior Session Legislation)

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Spectrum: Bipartisan Bill
Status: Introduced on February 8 2018 - 25% progression, died in chamber
Action: 2018-10-02 - Committee on Banking, Housing, and Urban Affairs. Hearings held.
Text: Latest bill text (Introduced) [PDF]

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.

Clarifying Commercial Real Estate Loans

Sen. Tom Cotton [R-AR]

Sen. Doug Jones [D-AL]

Date	Chamber	Action
2018-10-02	Senate	Committee on Banking, Housing, and Urban Affairs. Hearings held.
2018-02-08	Senate	Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

HB2148 (Related) 2017-11-08 - Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
SB2155 (Related) 2018-05-24 - Became Public Law No: 115-174.
HR905 (Similar To) 2018-05-22 - Motion to reconsider laid on the table Agreed to without objection.

Type	Source
Summary	https://www.congress.gov/bill/115th-congress/senate-bill/2405/all-info
Text	https://www.congress.gov/115/bills/s2405/BILLS-115s2405is.pdf