The Senate Banking Committee has approved a regulatory relief bill by a voice vote that removes a "haircut" that banks and thrifts have to take on the value of purchased mortgage servicing rights for capital purposes.Currently, depository institutions carry purchased MSRs at 90% of fair value, and the bill would allow the banking agencies to jointly raise the limit up to 100% of fair market value. The regulatory relief bill, sponsored by Sen. Mike Crapo, R-Idaho, also eliminates a restriction on loans-to-one-borrower involving development loans for residential housing. Thrifts currently cannot make such loans if the purchase price of the units exceeds $500,000. The House passed a regulatory relief bill by a 415-2 vote in March.
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