CMSA Reaffirms Support of Covered Bonds in U.S. Senate Hearing
Wants commercial mortgages included in covered bond legislation
10/15/2009
Christopher Hoeffel is an Executive Committee Member of the Commercial Mortgage Securities Association (CMSA). In written testimony on the topic of securitization for a hearing of the Senate Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment (Oct. 7), Hoeffell reaffirmed his organization's support of covered bonds in addition to restarting commercial mortgage-backed securities (CMBS).
Christopher Hoeffell"CMSA ... is committed to working on additional long-term solutions to ensure the market is able to meet ongoing commercial borrowing demands," Hoeffell's testimony stated. "For example, CMSA supports efforts to facilitate a U.S. commercial covered bond market in order to provide an additional source of liquidity through new and diverse funding sources. We will continue to work with Congress on the introduction of comprehensive legislation that would include high quality commercial mortgage loans and CMBS as eligible collateral in the emerging covered bond marketplace."
CMSA's public support of covered bonds dates back to at least July 2, 2008, when the organization issued an announcement urging the Federal Deposit Insurance Corporation (FDIC) to include commercial mortgage loans and CMBS in the final version of the FDIC's policy statement on covered bonds. However, the FDIC declined, limiting that policy statement to residential mortgage loans.