In this report, we drill down on our in-depth report on the Fed’s new, final stress capital buffer (SCB) regulation to focus on housing finance. Although the SCB is a significant departure from the current capital and stress-test regime and is a watershed moment for mortgages, its actual impact in 2020 will almost surely be overshadowed by real stresses that make some of those in CCAR look like fun. Just for starters, interest rates are already below the severely-stressed floors.
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