Mortgage lenders, banks, and trade groups have been put on alert as the latest proposal could drastically impact their residential mortgage portfolios.
The proposed changes, if passed, would require large banks to have higher capital requirements compared to international standards. This could lead to bank’s curtailing their mortgage offerings or pulling them entirely due to higher capital requirements. The effects of the proposal would likely be felt across the residential mortgage market, from institutional investors to customers.
Trade associations and mortgage groups have already voiced their displeasure with the proposal and are likely to mount a challenge to the new rules. They argue that the proposal could lead to increased mortgage costs and fewer available opportunities for people wanting to purchase a home.
The most important elements of the text:
• Proposed changes to capital requirements for large banks
• Change would require larger banks to have higher capital requirements than international standards
• Effects of change could be felt across the mortgage market
• Trade associations and mortgage groups unhappy with proposal
You can read this full article at: https://www.housingwire.com/articles/bank-regulators-release-plan-to-increase-capital-requirements-for-mortgage-lending/(subscription required)
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