Federal government lately has been trying to regulate everything to try and control the market and keep a wave of defaulted loans happening again.In the Atlanta commercial real estate market and nationwide the Dodd-Frank Financial Reform Law is being proposed currently that would enact  Qualified commercial real estate (QCRE) loan standards.

Many have known about the residential side for reform but the government tried to slip in commercial reform quietly.

The main jist of the commercial loan standards is a debt service coverage ratio requirement (DSCR) of 1.7 and requiring lenders to lend at 65% LTV (loan to value) or else the lender would have to guarantee a portion of losses in the event the loan defaulted later on.

This could have devestating affects for the commercial real estate industry.A session is being held for review on the proposed plan not yet put into affect.NAR (national association of realtors)  has implied these changes are detrimental  to the industry and plans express their opinions on the matter.

Hopefully common sense will prevail.Usually someone in Washington thinks they are brilliant when creating these plans but are not involved in the day to day deal making to see how these changes will not work as thought out and implemented.

With interest rates loans and commercial financing easy to obtain with not knowing what will happen with  QCRE it is a great time to buy Atlanta commercial real estate.