Holding Mortgages in Portfolio Likely to Become More Attractive Under Emerging Capital Rules
October 14, 2005
Banks and thrifts over the next few years can likely expect to see further regulatory incentives for holding unsecuritized mortgage loans – especially high quality collateral – in their investment portfolios. Federal banking regulators late last week approved a tentative rulemaking that would allow the vast majority of small and medium-sized depository institutions to lower the amount of capital they have to hold against residential mortgages in portfolio. The move – an advance notice… [One data table included]