Real estate, finance groups say securitization at risk in overhaul

More than 20 major real estate and bank lobbying associations said Thursday the uncertainty of new financial regulations is a major impediment to lending.

The groups are wary of sweeping action by federal regulators and Congress in the market for securities based on assets such as home loans and commercial real estate loans.

"This uncertainty today serves as one of the biggest impediments to new private lending and investing," the associations wrote to the Senate Banking Committee. "Put simply, given the totality and far reaching implications of regulatory and accounting changes, there are serious concerns about the future viability of the securitization markets."

Interests in the securitization industry are speaking out more loudly on both regulatory and congressional action. The Senate financial overhaul bill would require lenders to keep 5 percent of the value of the loans they make in an effort to keep, "skin in the game." Accounting standards are also changing as regulators pursue new and higher capital requirements.

"These changes are now being implemented during an extraordinarily challenging time," the groups wrote.

The associations include: American Bankers Association; American Hotel & Lodging Association; American Resort Development Association; American Securitization Forum; Associated General Contractors of America; Building Owners and Managers Association International; Certified Commercial Investment Member Institute; Commercial Real Estate Finance Council; Community Mortgage Banking Project; Institute of Real Estate Management; International Council of Shopping Centers; Loan Syndications and Trading Association; Mortgage Bankers Association; NAIOP, Commercial Real Estate Development Association; National Apartment Association; National Association of Real Estate Investment Trusts; National Association of Real Estate Investment Managers; National Association of Home Builders; National Multi Housing Council; The Real Estate Roundtable; and Securities Industry and Financial Markets Association (SIFMA).