Didi Parks, vice president of national accounts at Incenter Diligence Solutions, a third-party review firm, said it’s important that originators offering a new product ensure their staff is well trained, because if not all underwriting requirements are met, the originator could take pricing hits or might not be able to sell the loans at all.

Analysts suggest that the incentives in the proposals to retain mortgage originations are stronger than the incentives for banks to increase their deliveries into MBS.

A provision in the proposal would remove the requirement for banks to deduct mortgage servicing rights that reach a certain cap from common equity tier one capital and replace it with a 250% risk weighting on the assets, which might not be low enough to incentivize banks to increase their MSR holdings.