ShareWASHINGTON (September 10, 2024) – Federal Reserve Board Vice Chair for Supervision Michael S. Barr announced Tuesday significant improvements to how banks would handle low down payment mortgages under so-called Basel III "endgame" changes. The following is a statement from National Association of Realtors® President Kevin Sears:
"The Federal Reserve's revised Basel III proposal is a win for the housing market, Realtors®, and consumers. By making it easier for banks to support low down payment loans, these changes should ensure continued access to affordable home financing. The proposal laid out by the Federal Reserve also recognizes the strength of changes made more than a decade ago to regulation and oversight of the housing-finance industry in the wake of the subprime crisis. We applaud the Fed for this thoughtful adjustment, which ultimately reflects a commitment to a healthy housing market and reinforces the stability we've worked hard to achieve."
The changes announced today were a high-level summary. NAR will study the proposed rule when it is released to examine how its other changes will affect housing finance.
The National Association of Realtors® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.
# # #