Federal regulators working to establish Basel III capital requirements for banks this week appeared to be more concerned about how community banks will cope with the controversial rule than its potential negative impact on the mortgage market. Late last week, federal regulators announced that implementation of Basel III capital requirements is not expected to begin on Jan. 1, 2013, as initially planned because rules proposed in June have yet to be finalized. In a hearing at the Senate Banking, Housing and Urban Affairs Committee this week, staff for the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. stressed that they are still reviewing more than 1,500 comments and that a final rule is far from complete. Community banks filed...