Today I had the pleasure of having breakfast with Senate Minority Leader Mitch McConnell (R-KY) at Baker Donelson’s Washington, D.C. office. He spoke a lot about the current budget negotiations. I did take the opportunity to raise concerns I continually hear from our financial institution clients that they are getting killed by increasing regulatory oversight by the Federal government. When I asked him if he saw any way that Congress would provide relief to the financing industry, Senator McConnell said that while it is unlikely to see much relief along these lines, they have some leverage with the consideration of the Richard Cordray nomination to the Consumer Financial Protection Bureau (“CFPB”) to make some inroads into the current Dodd-Frank and CFPB regulatory overlay. (more…)

The headlines tell the story of the current state of CMBS and CRE defaults here and abroad. “Watch out for CMBS Re-Defaults” trumpets Real Estate Finance Intelligence. Financial News announces “Break Time Over as CMBS Bounce Back on Wall St.” “Cumulative CMBS Defaults Up but Slowed by New Issuances” states a headline in DSNews.com. The Wall Street Journal informs that “CMBS Issuance Marks Largest Ever New-Year Kickoff.” Some predict that CMBS 2.0 will include improved structures to deal with problems not contemplated during the boom years and champion more conservative underwriting. Other fear that as securitization volumes rise and investors become increasingly desperate for yields, underwriting and collateral standards will fall. (more…)