MBA Statement on Fed Vice Chair for Supervision Michelle Bowman’s Speech on Forthcoming Proposals to Revitalize Mortgage Lending

MBA’s President and CEO Bob Broeksmit, CMB, released the following statement on Federal Reserve Vice Chair for Supervision Michelle W. Bowman’s speech titled, “Revitalizing Bank Mortgage Lending, One Step with Basel,” in Orlando, Fla:

“For years, MBA has advocated for regulatory reforms that better align capital requirements with the actual risk profile of mortgage lending and servicing. 

“We welcome Vice Chair Bowman’s remarks today outlining a path toward revitalizing bank participation in mortgage lending. Her recognition that aspects of the current capital framework have discouraged banks from competing for mortgage origination and servicing activity is an important step forward. A more appropriately calibrated approach, particularly with respect to mortgage servicing rights and mortgage loans, will strengthen banks’ ability to serve creditworthy borrowers while maintaining safety and soundness.

”MBA is eager to review the forthcoming proposal and engage through the formal comment process, and we stand ready to work with the Federal Reserve and other regulators to advance a balanced framework that supports sustainable mortgage origination and warehouse lending, robust servicing capacity, and continued access to affordable home financing.”