Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

Trades react to Basel III Endgame remarks by Fed Gov. Barr

Email A Friend Printer Friendly Version
0 comments
Banking, Financial Stability
Friday, September 13, 2024

Financial industry trade organizations have been receptive to the prospect of various updates to the Basel III Endgame regulatory capital framework described by Federal Reserve Board Vice Chair of Supervision Michael Barr in remarks delivered at the Brookings Institution, Washington, D.C.

Below are statements published by trade associations representing a variety of banking institutions:

Consumer Bankers Association (CBA) President and CEO Lindsey Johnson:

“As we have long said, this proposal would significantly constrain banks’ ability to meet the lending needs of the millions of consumers and small businesses they serve. Given the economic headwinds millions of consumers face today, it’s more important than ever that regulators in Washington understand the cumulative impact regulations like this will have on the nearly two-thirds of consumers who are living paycheck to paycheck.

“Moving forward, CBA will continue to emphasize the clear reality that America’s leading banks remain well-capitalized, globally competitive, and have proven their resiliency to withstand the most severe economic scenarios.”

Mortgage Bankers Association President and CEO Bob Broeksmit:

“It appears that common sense has prevailed with the decision to re-propose the flawed Basel III Endgame proposal, a move that we have consistently called for since last summer in testimony before Congress, speeches, comment letters, and ongoing conversations with federal regulators.

“We support Vice Chair Barr’s recommendations to recalibrate some provisions that would have had negative impacts on single-family housing and commercial real estate finance markets. This includes removing the 20-percentage point risk-weighting add-on for single-family mortgages, which would have further diminished banks’ participation in mortgage lending while reducing credit availability for low- and moderate-income homebuyers. 

“We look forward to reviewing and commenting on the re-proposal, which logic dictates should include the regulators’ quantitative impact study. We will continue to advocate for a bank capital framework – including reduced risk-weighting for mortgage servicing rights and warehouse lines – that ensures safety and soundness without reducing mortgage market participation and thus limiting choice and increasing costs for consumers.”

Bank Policy Institute’s (BPI) statement:

“BPI and its members look forward to reviewing the announced reproposal of the Basel III Endgame. We remain concerned about the process and the analytical rigor behind the proposal. The focus should not be on reaching a politically expedient top-line number but rather a bottom-up evaluation of each aspect of the rule to ensure it is based on data and proper analysis, not just a haircut on faulty math of the original proposal.
 
“The original process lacked a cost-benefit analysis, full transparency and recognition of the interconnectedness of capital requirements: it remains to be seen if this reproposal is the result of a better process. It’s also essential that the agencies take into account the extraordinary overlap with the stress test regime, the GSIB surcharge and other capital requirements — we need a holistic solution. 
 
“Ultimately the final rule will have a significant impact on jobs, mortgages, small businesses, capital markets and the growth of the real economy overall. As Vice Chair Barr noted yesterday, it is imperative that we get this right, but the devil is in the details.”

Today's other top stories
New Fed IG will oversee CFPB investigation over mass firings
Bankers largely expect balance sheets to remain unchanged, per Fed survey results
Industry leaders take the stage at NS3 in Pittsburgh
MBA reports sizeable uptick in mortgage applications
Senate confirms new deputy secretary of HUD


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 2248 times.

Monthly Newsletter

Dodd Frank Update June 2025

Cover Story:

What lenders should know about CRA benchmarking, business strategies


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update May 2025
Dodd Frank Update June 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
May 2025
April 2025
March 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
CFPB's Shake-Up & Its Impact on You
2025 Economic Outlook Series
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement