NAR sent a coalition letter to the Office of the Comptroller of the Currency (OCC), to the Board of Governors of the Federal Reserve System (Fed), the Federal Deposit Insurance Corporation (FDIC) raising concerns that the Basel III Endgame proposed rule, as currently drafted, will cause unintended harm to home loan borrowers by significantly increasing overall required capital and risk weights for mortgage assets held in
portfolio by banks. To address this, in addition to other recommendations the coalition asked that the agencies modify their risk-based capital regulations so that it is clear banks can use reinsurance credit risk transfer (CRT) for risk mitigation and receive capital relief for using it.
Coalition Letter to the OCC, Fed, FDIC Regarding the Basel III Endgame Proposed Rule
Issue Date: January 16, 2024
NAR sent a coalition letter to the Office of the Comptroller of the Currency (OCC), to the Board of Governors of the Federal Reserve System (Fed), the Federal Deposit Insurance Corporation (FDIC) raising concerns that the Basel III Endgame proposed rule, as currently drafted, will cause unintended harm to home loan borrowers by significantly increasing overall required capital and risk weights for mortgage assets held in
portfolio by banks. To address this, in addition to other recommendations the coalition asked that the agencies modify their risk-based capital regulations so that it is clear banks can use reinsurance credit risk transfer (CRT) for risk mitigation and receive capital relief for using it.
Read the Letter