The Dodd-Frank Act : impact on real estate investment entities
Name
825108486-MIT.pdf
Description
Full printable version
Size
1.82 MB
Format
Adobe PDF
Checksum (MD5)
d7590e6dfdf7333d735471ea7d7cc9b0
Author(s)
DiMinico, Michael (Michael Robert)
Lubitz, John Edward
Advisor(s)
W. Tod McGrath.
Alternative Title
Dodd-Frank Wall Street Reform and Consumer Protection Act : impact on real estate investment entities
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (The Act), which was developed by Congress in response to the financial crisis of 2008. In this paper we briefly discuss the history of U.S. financial regulation, the events leading up to the Dodd-Frank Act, and the intent of the new regulation. We note key events and industry types that contributed to the financial collapse of 2008. We also identify the provisions within the Act that will impact private and publically traded real estate investment entities and analyze the extent of any such impact. The hypothesis of this paper is that certain real estate investment entities are not systemic to the U.S. financial system and if new regulation designed to reform Wall Street and protect consumers is placing a significant burden on these firms without accomplishing the goals of the Act, then real estate investment entities should not be subject to such regulation. The analytic approach of this paper is to: 1) identify the provisions within the Act that will impact real estate equity entities (i.e., private real estate private funds and REITs), 2) conduct industry interviews to identify the likely short-term magnitude of the impacts due to new regulation and, 3) offer a conclusion as to whether the Act will have a substantial negative effect on the industry. In conclusion, with respect to these investment entities, we found that the Dodd-Frank Act has improved transparency to investors through increased disclosures. However, the allencompassing nature of the Act has forced fund managers who were previously exempt from SEC registration to comply with securities regulations regardless of the systemic nature, or lack thereof, of their business practices. While such compliance will not have a substantial negative effect on the industry, we find that the regulation of private real estate funds does not help further the goals of the Dodd-Frank Act.
Description
Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.
Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections.
Includes bibliographical references (p. 69-70).
Subjects
Center for Real Estate. Program in Real Estate Development.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
Massachusetts Institute of Technology. Center for Real Estate
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