Risk Retention For Commercial Mortgage-Backed Securities: Fact Sheet

Introduction

On October 22, 2014, the federal regulatory agencies responsible for implementing regulations under Dodd-Frank finalized the risk retention rules for ABS transactions, including CMBS transactions. The final rules come more than three years after risk retention rules were originally proposed,¹ and more than a year after the rules were re-proposed.²  The final rules contain a few clarifications and revisions to the re-proposed rules, but for the most part the final rules are substantially the same as the re-proposed rules.

The following is a summary of the risk retention provisions as they relate to CMBS.  A summary of the revisions made to the re-proposed rules appears at page 8 and a summary of industry requested changes to the re-proposed rules that were not adopted in the final rules appears at page 9.