Washington, DC – November 9, 2012 – (RealEstateRama) — David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA) today issued the following statement in reaction to the announcement by federal financial regulators that they do not expect new proposed capital requirement under Basel III to go into effect by January 1, 2013.
“This is a positive development, and hopefully signals that the regulators are rethinking their problematic Basel III rule and are going back to the drawing board for a new proposed rule. The rules, as proposed this summer, would have had serious negative repercussions across the lending landscape, with the impact felt most acutely by residential, commercial and multifamily real estate borrowers, investors and lenders in the form of tighter credit and higher costs.
“It is critical now that regulators re-propose Basel implementation rules that more appropriately allocate risk-weights on real estate-related assets, whether they be residential, commercial or multifamily loans and securities and/or servicing rights. Otherwise, credit for real estate transactions will tighten and consumer and borrower costs will go up, as banks reduce their real estate lending and mortgage servicing business.”
A copy of MBA’s October 17, 2012 comment letter on the Basel III proposed rule can be found here.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.