On Nov. 29, 2012, the House Subcommittee on Financial Institutions and Consumer Credit and the House Subcommittee on Insurance, Housing and Community Opportunity held a joint subcommittee hearing on “Examining the Impact of the Proposed Rules to Implement Basel III Capital Standards.” NAR supports strong capital requirements for the global banking system, but has concerns that the proposed Basel III capital rules will have a detrimental effect on the accessibility and affordability of residential and commercial mortgage credit due to the disproportionate risk treatment of mortgages. In a letter to both subcommittees prior to the hearing, NAR recommended that the proposed regulations be modified so they more accurately correlate the actual risk characteristic of mortgages with the proposed risk weights.
Basel III capital standards are expected to be implemented beginning in 2013 through 2018. NAR will continue to engage with Congress to push for regulations that will not dramatically increase the cost of residential and commercial mortgage lending.
NAR's Letter to the Subcommittee on Insurance, Housing and Community Opportunity
NAR's Letter to the Subcommittee on Financial Institutions and Consumer Credit