National Association of REALTORS
National Association of REALTORSSupportTrade association
Summary: The National Association of REALTORS® (NAR) supports the proposed changes to the Basel III framework, noting that they improve banks' ability to participate in mortgage finance and enhance housing ecosystem resilience. While generally supportive, the association advocates for further refinements to align capital charges with risk for high-LTV borrowers, rental properties, and private mortgage insurance (PMI) to better support housing affordability.
The National Association of REALTORS appreciates the efforts of FED, FDIC, and OCC to re-propose the final changes to the Basel III framework. The re-proposal makes meaningful changes to the prior proposal that will improve banks’ ability to participate in mortgage finance, thereby improving resilience in the housing ecosystem and broader economy. However, REALTORS believe there is further room to better align capital charges on mortgage-related investments with risk, to support higher LTV and first-time buyers, and consideration should be given to the rule's effect on the greater mortgage finance ecosystem. Similarly, banks should be able to benefit from proven risk-absorbing alternatives. These changes would allow banks to play a more robust role in their communities and support homebuyers earlier in their homeowning experience. Furthermore, broader participation by banks will advance resilience in the housing finance system.