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| David H. Stevens |
Washington, DC — David H. Stevens,
President & CEO of the Mortgage Bankers Association (MBA) 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.”
Contact::
John Mechem
(202) 557-2924
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