Financial regulatory overhaul's effects on D.C. commercial real estate

"I don't think the signing of the ... reform bill into law will have a material impact on the Washington metro commercial real estate markets.

"The bill promotes sound underwriting practices, which is good. This is based on the requirement, as it relates to debt securitization, that banks retain at least 5 percent of the loan's risk on their books unless the loans meet certain standards for reducing risks. The passage of the bill should bring some certainty to Wall Street and regulatory questions.

"People want loan and property level data for greater transparency and risk assessment and that is a good thing!"

-- Eric Schwartz, director andchief appraiser of the Real Estate Services Unit of CapitalSource Bank in Chevy Chase

========

"None of us are experts in connection with the regulatory reform legislation ... All I know is anything that constrains the creation of further liquidity in financial markets isn't good for the well-being of the economy, whether it be lending for commercial real estate markets, business loans, home loans or anything else that contributes to "width and breadth" of the lending markets.

"Simply a rollback to the regulatory standards that existed prior to Wall Street being able to play with the house's money would have been best. That would have been the simplest approach.

"As you know, the 800-pound gorilla in the room when it comes to the economy is the need for further liquidity in the financial markets that in turn improves lending terms and availability of financing; virtually all else are simply band-aid short-term fixes for a much bigger problem."

-- Jonathan J. Feucht, a principal with Rim Pacific Management in Reston