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CMSA Applauds Bachus Letter on Rushed Securitization Accounting Reforms

2008-07-25 11:50:00

CMSA Applauds Bachus Letter on Rushed Securitization Accounting Reforms

    Ranking Member Recommends Extended and Measured Approach for Accounting


    NEW YORK, July 25 /EMWNews/ -- The Commercial Mortgage

Securities Association (CMSA) today praised House Financial Services

Committee Ranking Member Spencer Bachus (R-AL) for announcing his

opposition to a year-end timeframe for changes to FASB Statement 140 and

Interpretation FIN 46(R). In a letter to Christopher Cox, Chairman of the

SEC, and Robert Herz, Chairman of the Financial Accounting Standards Board

(FASB), Ranking Member Bachus voiced his strong opposition to making rushed

and sweeping changes to these accounting rules. The Congressman recommended

an extension of the deadline until January 1, 2010 to "permit all

stakeholders to have a full and fair opportunity to debate all policy

alternatives and their consequences."

    "Changing accounting standards during this period of financial stress

requires full consideration of all available options to ensure a smooth

transition," stated J. Christopher Hoeffel, President of CMSA and Managing

Director, J.P. Morgan Chase. "The Ranking Member's approach displays a deep

commitment to promoting confidence and stability in our capital markets by

ensuring that major changes receive full deliberation by policymakers and

market participants," he said.

    CMSA has long been concerned that rule changes to Statement 140 and

Interpretation 46(R) will dramatically alter the market for commercial

mortgage-backed securities (CMBS) and wholeheartedly supports options that

can provide transparency through accounting practices, while also

maintaining the viability of the marketplace. It has been CMSA's

longstanding position that these issues require full deliberation over a

reasonable period of time given the impact on the U.S. financial markets

and borrower access to credit.

    "We join Ranking Member Bachus in urging FASB to take a deliberate and

measured approach on any changes to these accounting rules to avoid any

serious unintended consequences for the capital markets and overall

economy," said Dottie Cunningham, CEO of CMSA. "We must not rush changes

during this challenging time until all options and consequences are

carefully considered."


    Commercial Mortgage Securities Association (CMSA) is a trade

association dedicated to promoting the ongoing strength, liquidity and

viability of commercial real estate capital market finance worldwide.

    With commercial mortgage backed securities (CMBS) currently valued in

excess of $900 billion, the commercial real estate capital market finance

industry is a responsible, healthy and vital contributor to the overall


    CMSA's diverse membership represents the full range of market

participants including investment banks and commercial banks, rating

agencies, insurance companies, service providers and investors at all

levels of risk.

    CMSA provides a forum for continuous and timely dialogue among its

members through programs that offer meaningful opportunities to address

issues. CMSA acts as a voice of the marketplace encouraging the development

of consensus positions and advocating before government agencies and

legislators on vital concerns facing the industry. CMSA supports

professional growth through a wide variety of educational and research


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