BankingDive, January 19, 2024, 9 Capital-Requirements Comments To Watch
The National Community Reinvestment Coalition suggested the Fed walk back its mortgage-related risk weightings to the Basel’s standard. “If risk weightings for high loan-to-value mortgage loans held for investment increase dramatically, it may make banks more hesitant to extend mortgage loans to the types of borrowers — typically lower-wealth, lower-income, and of color — who make smaller down payments,” the NCRC said in its letter. “The agencies should adopt the effective but less punitive risk weightings called for in Basel III.”
