Regulators say they have ‘gotten the message’ on Basel III mortgage issues

Representatives from the government agencies seeking to implement Basel III’s requirements in the United States told U.S. House lawmakers they are heeding concerns raised by community bankers and plan to make changes to their rule proposals. Industry participants discussed several issues during a recent hearing before two House Financial Services subcommittees. Of particular concern is the proposed rules’ potential impact on mortgage lending and how new mortgage risk weights could interact with other mortgage rules mandated by Dodd-Frank. One regulator said the agencies are looking closely at this issue.