The Basel re-proposal from federal bank regulators includes provisions that would limit mortgage warehouse lending and securitization by banks, according to industry participants.

The near-term credit impact of the new housing legislation on existing SFR securitizations is expected to be benign. Build-to-rent properties are expected to be the predominant collateral in new securitizations.

FHFA plans to issue a proposed rule regarding credit-risk retention and the SEC is working toward a proposal to encourage issuance of publicly registered MBS and ABS.

A proposal to revise Basel capital requirements for banks included some provisions that could have a negative impact on credit-risk transfer activity, according to industry participants.

SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.

Urban Institute researchers say the mortgage industry will experience slightly better capital treatment as a result of the changes to the Basel III Endgame, but they recommend some improvements.

The voluntary scope aims to standardize practices among due diligence reviewers and also prevent a “race to the bottom.”

The comment period on a concept release from the SEC to revise disclosure requirements on MBS and ABS closed in December. Since then, SEC officials have held a number of meetings with industry groups.

As bank issuance of CRT deals increase, additional regulations and disclosure requirements are under consideration.

The request came from the CRE Finance Council, the Mortgage Bankers Association and the Securities Industry and Financial Markets Association. The groups said the disclosure requirements have negatively impacted the commercial MBS market.