Implementation of Basel III capital rules threatens the U.S. mortgage industry, says the MBA in...

Implementation of Basel III capital rules threatens the U.S. mortgage industry, says the MBA in a letter sent to the major bank regulators. Not just will overall mortgage lending decline, but mortgage lending in otherwise perfectly acceptable areas will as well. Also, capital penalties on mortgage servicing rights are forcing banks to sell these assets to others who may not be as equipped to handle them. Wilbur Ross (OCN) disagrees.
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Comments (3)
  • timetosave
    , contributor
    Comments (36) | Send Message
    The mortgage industry threatens the mortgage industry...
    19 Oct 2012, 11:02 AM Reply Like
  • Hobski
    , contributor
    Comments (49) | Send Message
    The MBA is a disgrace. Should every bank lever back up to unreasonable levels to facilitate more lending? That's how we ended up in this mess. Plus, why would a specialty finance company (like OCN) buy MSRs if they weren't "equipped" to handle them? That's what they do for a living. Your members were not equipped to handle their balance sheets. That's why they're selling! No one cares that the buyers are getting a good deal, other than you. What a joke.
    19 Oct 2012, 11:11 AM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
    Lets have everyone cry now that there is someone thats wants uniform reasonable rules. The poor mortgage industry is so mistreated after stealing trillions of taxpayer dollars.


    This is really surprising, if you are a bank and don't have the capital to lend, then don't lend or get more capital. Lets put the bank dollars at risk this time, not the taxpayer dollars.


    Thats what this is really all about. What the banks really want to say is, "If you politician's want to goose the economy or payback your loyal voters with special loans and terms, your going to have to do it with taxpayer money at risk, not our capital."


    I think they just outed the politicians. Of course the public and media are so ignorant that again, the reality will be ignored and the result blamed on the greedy banks.
    19 Oct 2012, 11:30 AM Reply Like
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