The National Association of REALTORS® and industry partners notched a key victory in ensuring the continued availability of mortgage financing for borrowers when the Federal Reserve board yesterday released its final rule implementing the BASEL III international banking accords.
The rule leaves out an increased risk-weighting provision in the earlier proposed version of the rule that would have made residential mortgages more costly to many borrowers. The proposed rule would have required banks to hold more capital on their books for the residential loans they make. But the final rule leaves the risk-weighting requirement for residential loans unchanged.
The rule also eases proposed standards on community banks and extends the time period for banks to adopt the new standards, but it also imposes some new standards on the country’s largest banks. NAR is looking carefully at the rule, which is extensive and impacts all bank lending activity, and will be providing a more detailed analysis in the future.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2013/07/03/fed-basel-iii-rule-win-for-real-estate
