U.S. Risk Weights for Mortgages Could Exceed International Standards

Bloomberg writes that a key feature of U.S. version of Basel III banking standards—which is set to be released on July7—will be risk weights for mortgages that would be 20% higher than the minimum Basel III standards. While the standards would apply only to large financial institutions, and not to government-backed loans sold to Fannie Mae and Freddie Mac, some worry that the proposal will burden banks and hinder homeownership.

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