WASHINGTON, DC – David M. Dworkin, President and CEO of the National Housing Conference (NHC), released the following statement in response to remarks by Michael Barr, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, regarding the re-proposal of the bank capital framework, known as Basel III Endgame.
“We commend the regulators for revising the capital requirements of the proposed Basel III Endgame, particularly concerning higher loan-to-value owner-occupied home mortgages. It is clear that the Federal Reserve Board of Governors carefully considered the feedback submitted by a broad range of stakeholders. This is how the regulatory process is meant to work.
Aligning these loans with the existing capital standards will avoid discouraging lending to homebuyers who do not have the benefit of multi-generational wealth or higher-than-average incomes.
We appreciate that the changes consider how capital requirements are balanced with quantifiable risk, avoiding any unintended consequences that could hinder community development investments or lending in underserved areas. Failing to address these issues would have had a devastating impact on efforts to increase homeownership in communities of color and disadvantage all low- and moderate-income, first-time, and first-generation homebuyers.
NHC led a coalition of civil rights organizations, affordable housing advocates, and housing industry trade groups, to raise urgent concerns to the banking regulators about how the original Basel III proposal could have unintentionally harmed already underserved communities. We are pleased they listened to our concerns and are issuing a re-proposal, ensuring Basel III’s implementation does not lead to reduced credit availability for all types of real estate buyers and undermine economic growth.
NHC and our members look forward to submitting comments on this re-proposal.”
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About NHC: The National Housing Conference is a diverse continuum of affordable housing stakeholders that convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest – an America where everyone is able to live in a quality, affordable home in a thriving community. Politically diverse and nonpartisan, NHC is a 501(c)3 nonprofit organization.