Forget the firestorm caused by the ‘GMAC Foreclosure-gate’ scandal. The industry may have a bigger problem on its hands. Banking regulators and central bank officials from across the world met earlier this month to finalize their Basel III talks on tougher capital rules for depositories and it appears one big loser could be mortgage servicing rights. The details are not yet final, but according to one reading under the accord, MSR values cannot count for more than 10% of a bank's capital base. Currently, the cap is 100%. "International regulators wanted zero," said one servicing advisor. Stay tuned…
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