CFTC Clarifies Position on Mortgage REITs
On December 7, 2012, the CFTC issued a no-action letter clarifying that mortgage REITs (mREITs) that hedge with swaps and meet certain criteria do not need to register as commodity pools. These conditions include the requirement that the initial margin and premiums paid to establish the mREIT’s commodity interest positions do not exceed five percent of the fair market value of the mREIT’s total assets and that the mortgage REIT does not derive more than five percent of its annual gross income from commodity positions that are not bona fide hedging transactions. Additionally, on the same day, the CFTC issued an interpretative and no-action letter offering broad relief for securitization vehicles from the commodity pool requirements, including time-limited no-action relief until March 31, 2013 for securitization entities not otherwise exempt, in order to allow additional time for CFTC staff to study these entities.
LATEST UPDATES
On July 13, 2012, NAREIT submitted comments on proposed built-in gains regulations.
On June 15, 2012, the IRS issued Rev. Rul. 2012-17, holding that money market funds are cash items for purposes of the 75% asset test.
On May 1, 2012, NAREIT submitted comments to the IRS on Notice 2012-25: 2012-2013 Guidance Priority List Recommendations.
On March 19, 2012, NAREIT asked the IRS for changes to Form 1120-REIT.
On May 31, NAREIT and the U.S. Chamber of Commerce submitted a letter to the FASB in response to the Financial Instruments – Credit Losses (Subtopic 825-15) Proposal
On May 31, NAREIT submitted a letter to the FASB in response to the Financial Instruments – Credit Losses (Sub-topic 825-15) Proposal.
On May 17, NAREIT issued an SFO Alert on the joint FASB/IASB Revised Leases Proposal
On May 15, NAREIT and the U.S. Chamber of Commerce submitted a letter to the FASB in response to the Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Proposal
On May 15, NAREIT submitted a letter to the FASB in response to the Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Proposal
On April 12, NAREIT issued an SFO Report: Accounting and Financial Standards Update Spring 2013
On April 5, NAREIT issued an SFO Alert on the FASB’s proposal that would narrow the definition of a discontinued operation
On March 29, NAREIT submitted a letter to the FASB in response to the Transfers and Servicing (Topic 860): Effective Control for Transfers with Forward Agreements to Repurchase Assets and Accounting for Repurchase Financings Proposal.
On March 26, NAREIT submitted a letter to the FASB requesting an extension of the comment letter deadline for the Financial Instruments – Credit Losses Proposal.
On March 25, NAREIT and the U.S. Chamber of Commerce submitted a letter to the FASB requesting an extension of the comment letter deadline for the Financial Instruments – Credit Losses Proposal.
On March 5, 2013, NAREIT submitted a comment letter to the International Valuation Standards Council in response to the Investment Property Discussion Paper.
On March 5, 2013, NAREIT issued an SFO Alert on the FASB’s proposal for a new model for accounting for the classification and measurement of financial instruments.
On January 24, 2013, NAREIT issued an SFO Alert on the SEC's areas of focus in reviewing 2012 10-K filings.
On January 3, 2013, NAREIT issued an SFO Alert on the FASB’s proposal for a new model for accounting for credit losses on financial assets, including lease receivables.
On December 13, 2012, NAREIT issued an SFO Alert on the FASB’s decision to modify guidance for Reporting Discontinued Operations that would eliminate many discontinued operations reported by NAREIT member companies.
On December 12, 2012, NAREIT issued an SFO Alert on the FASB's decision to exempt all REITs from Phase I of the Investment Companies Project.
On November 30, 2012, NAREIT submitted a letter to the FASB in response to the Invitation to Comment: Disclosure Framework.
On October 10, 2012, NAREIT & the U.S. Chamber of Commerce submitted a letter to the FASB and the IASB requesting that the Boards rededicate themselves to the convergence of global financial standards.
On September 25, 2012, NAREIT submitted a comment letter to the FASB in response to the Disclosures about Liquidity Risk and Interest Rate Risk Proposed Accounting Standards Update.
On September 5, 2012, NAREIT issued an SFO Alert on the FASB’s decision to tentatively eliminate the REIT exception for mortgage REITs from Investment Companies guidance.
On August 10, 2012, NAREIT issued an SFO Report reporting on FASB abandoning entity-based approach to investment property.
On August 1, 2012, NAREIT issued an SFO Report on the July 2012 Joint FASB/IASB Meetings.
On July 18, 2012, NAREIT issued an SFO Report on the FASB and IASB Leases Webcast and the FASB Disclosure Framework Project.
On June 25, 2012, NAREIT issued an SFO Report – Summer 2012 Accounting and Financial Standards Update.
On June 14, 2012, the FASB and IASB decoupled lease accounting and reporting for investment property.
On May 17, 2012, and May 18, 2012, Members of Congress submitted bipartisan letters to FASB Urging a Comprehensive Cost-Benefit Analysis of Proposed Changes to Lease Accounting Standard.
On April 25, 2012, NAREIT & the U.S. Chamber of Commerce submitted a letter to the FASB and the IASB on recent tentative changes to Proposed Leases Accounting.
On April 19, 2012, NAREIT & the U.S. Chamber of Commerce submitted a letter to the PCAOB on Mandatory Audit Firm Rotation.
On March 13, 2012, NAREIT and its REESA Global Partners submitted a comment letter to the FASB and the IASB in response to the Revenue from Contracts with Customers Proposed Accounting Standards Update.
