Joint Release/Federal Banking Agencies Finalize Extension of Certain Capital Rule Transitions — 2017-11-21

Federal Banking Agencies Finalize Extension of Certain Capital Rule Transitions The federal banking agencies on Tuesday finalized a rule for certain banking organizations by extending the existing capital requirements for mortgage servicing assets and certain other items. The rule is being finalized to prevent different rules from taking effect while the agencies consider a broader simplification of the capital rules. As part of the recent review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act, the agencies announced that they intended to simplify the capital rules to reduce regulatory burden, particularly for community banks. Subsequently, in September, the agencies released a proposal that would simplify the capital rules' treatment of mortgage servicing assets and other items for some banking organizations. However, prior to that rule being finalized, the current transitional treatment for many of these items was scheduled to be replaced with a different treatment on January 1, 2018.