Basel III and MSRs

Basel III caps at 10% the amount of servicing rights that can be counted as capital. (See the National Mortgage News issue of Monday, October 4.) There is a multi-year phase in on the rule which will help some of the nation's megabanks. One servicing advisor told me that as of June 30 Wells Fargo was "already something in the mid- to high-teens in percentage of Tier 1 capital attributed to MSR. Plus, they have eight years or so to comply with the 10% cap. That amount of servicing isn't chicken feed for the market overall, and I don't know the overall MSR component to the banking industry capital component as a whole, but is Basel III the boon to independents that it seems to be, given time to comply and market power wielded by the big guys?"