Key takeaway: The current Basel III capital proposal does not explicitly include mortgage insurance as a factor in determining a loan’s risk weight, but seeks industry input on the potential benefits and drawbacks of doing so, leaving the door open to possible changes. Expert quote: “There are like 50 reasons why banks don’t want to […]
Banks question Basel omission of PMI in mortgage weights Read More »
Key Insight: Federal Reserve Vice Chair for Supervision Michelle Bowman highlighted upcoming changes to the global systemically important bank surcharge and Basel III endgame implementation rule, which primarily focus on adjusting input parameters and certain risk weighting mechanisms rather than overall capital levels. Expert quote: “These changes to the capital framework eliminate overlapping requirements, right-size
Fed’s Bowman previews streamlined capital framework Read More »
Key Insight: Federal Reserve Vice Chair for Supervision Michelle Bowman is racing ahead to publish Basel III for commentary before the end of the first quarter. She’s previously highlighted that changes will be introduced to the framework to encourage bank participation in mortgages. Expert Quote: “I’ve said for a number of months now that we
Fed’s Bowman says Basel proposal still on track for end of Q1 Read More »
Key Insight: Federal Reserve Vice Chair for Supervision Michelle Bowman said the Fed is exploring ways to reduce banks’ regulatory costs associated with mortgage lending and servicing. Expert Quote: “These potential changes would address legitimate concerns about mortgage market structure while maintaining appropriate prudential safeguards.” — Fed Vice Chair for Supervision Michelle Bowman. Forward Look:
Fed’s Bowman wants to boost banks’ share of mortgage market Read More »