Hi, I’m Adam DeSanctis with the Mortgage Minute, the latest news from the Mortgage Bankers Association. Last Thursday, the federal banking agencies released a long anticipated Basel three endgame re-proposal on bank capital requirements. Our initial review is that it reflects significant progress for a revised capital framework that works much better for our single family and commercial real estate finance members. The proposal reflects several priorities. We have long advocated for including reducing the punitive capital treatment of mortgage servicing rights, adopting more granular LTV based risk rates for loans held on banks’ portfolios, and taking steps to reduce the punitive capital treatment of commercial real estate loans on banks’ balance sheets. These wins are the result of more than two years of sustained MBA advocacy through comment letters, meetings with regulators and testimony. President and CEO Bob Broeksmit before Congress back in 2023. The initial proposal in July, 2023 was flawed and unworkable. We pushed for a re proposal and got one comments are due June 18th. We’ll work with members to recommend a few more changes, including reestablishing a 50% risk weight for warehouse lines for all banks. A fix that would strengthen the flow of mortgage credit from banks to IMBs to borrowers, and recognizing the value of private mortgage insurance in an assignment of risk rates for loans held on balance sheets. We think that if PMI is properly accounted for, loans with insurance coverage are treated as less risky, which lowers the capital banks must hold against them. Bottom line MBA’s long emphasized that banks play a critical role in mortgage lending and servicing both directly and through financing IMBs. We’ll be hosting a webinar on the re-proposal on Friday, March 27th. Go to mba.org/webinars to register. And finally, you don’t wanna miss our upcoming national advocacy conference in DC. On April 14th and 15th, you’ll have the opportunity to hear from lawmakers, regulators, potentially meet with your representative and senators and much more. Register today at mba.org/nac26. I hope to see you there.
Adam DeSanctis, VP, Communications at Mortgage Bankers Association
As a strategic public affairs and communications executive with nearly two decades of experience, Adam has deep expertise in strategy, management, and media relations. He is widely regarded as an expert in a variety of communications, including advocacy, brand, executive, crisis, grassroots, and social media. In his career, he has been the MBA spokesperson on a wide variety of real estate research and advocacy-related issues, promoted MBA research and advocacy efforts to financial, political, and trade industry media and on MBA’s social media channels, and secured media opportunities for MBA leadership on key real estate trends and issues, generated media coverage for MBA’s research and data on mortgage applications, credit availability, homebuilder applications, mortgage forbearance/delinquencies, commercial real estate originations, and forecasts, and other industry analysis, developed key strategic initiatives for MBA’s organizational public affairs plan, media relations and member communications support for mPower, MBA’s Opens Doors Foundation and MBA’s Diversity, Equity, and Inclusion programs.