NAR joined a coalition of consumer and mortgage finance groups to warn the bank regulators of the adverse impact that the proposed Basel III revisions will have on the U.S. housing finance system.
The proposed final Basel III rules will only apply to banks with assets of more than $100 billion, but that consists of many of the largest 20 banks in the U.S., and it raises the capital banks must hold against mortgages where less than a 30% down payment is made. Banks' ability to provide mortgage lenders with lines of credit as well as support for the commercial and construction industries could be affected.
The changes could raise the cost of borrowing in high-cost areas, harm new programs for underserved groups, and weigh on housing supply.
Download the Coalition Letter to Bank Regulators (PDF: 111 KB)