Government Lenders Await the ‘McCargo Rule’

National Mortgage News, Sept. 6, 2022–Christopher Whalen (subscription)
To summarize, the risk based capital [RBC] rule, a.k.a. the “McCargo Rule” places different capital requirements on the assets of independent mortgage banks. Most notable are the 250% capital requirements for mortgage servicing rights [MSRs], which mirrors the Basel IV capital weight for MSRs held by banks above a certain allowed percentage of capital. (MBA mention)