U.S. Banks Push For More Mortgage Capital Relief In Final
Markit·2026-06-26·via All Articles on Seeking Alpha
Summary
Persistent punitive mortgage capital requirements emerged as a top concern in banks' 'endgame' comment letters, despite regulators' efforts to revitalize banks' mortgage activity.
Under the proposals, residential mortgage risk weights would be tailored to each loan depending on its loan-to-value ratio, as opposed to current uniform risk weights.
One of the most widespread points of contention among banks' comment letters was the 250% risk weight for mortgage servicing assets, even while eliminating the current deduction threshold.
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Persistent punitive mortgage capital requirements emerged as a top concern in banks' "endgame" comment letters, despite regulators' efforts to revitalize banks' mortgage activity.
US banks are calling on federal regulators to revise the proposed Basel
