WASHINGTON – U.S. Senator Mike Rounds (R-S.D.) raised concerns about the potential negative impact of the Federal Reserve's Basel III Endgame proposal on housing affordability during a recent hearing. The discussion took place as part of the Banking, Housing, and Urban Affairs hearing titled, “The Semiannual Monetary Policy Report to the Congress.”
Rounds expressed his apprehensions, stating, "I’ve weighed in several times with the concerns I have with the Basel III Endgame. I’m concerned that the proposal will make buying a home harder than it already is for many, and further down the road, I fear that it could disincentivize mortgage lending from the largest banks, particularly with regard to the secondary market and their impact on even smaller banks that do business with them."
Seeking clarification and potential action, Rounds directly asked Federal Reserve Chair Jerome Powell, "Would you be willing to withdraw the proposal or re-propose with significant modifications, particularly addressing the concerns that I and others have on this committee, specifically with regard to the impact?"
In response, Powell acknowledged the possibility of revisiting the proposal, stating, "If it turns out to be appropriate, and we get to that point, for us to re-propose parts or all of the thing, then we won’t hesitate to do so."
The dialogue between Senator Rounds and Chair Powell highlights the ongoing discussions and considerations surrounding the Basel III Endgame proposal and its implications for housing affordability and mortgage lending.
Click [HERE](link) to listen to Rounds’ remarks.
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