(Il Sole 24 Ore Radiocor) - Milano, 16 feb - The Federal Reserve will soon introduce regulatory proposals aimed at encouraging banks to originate and hold more mortgages, Fed vice chair for supervision Michelle Bowman said.

In comments prepared for delivery at a conference, Bowman said two regulatory proposals would soon be introduced that would increase bank incentives to engage in mortgage origination and servicing. First, the proposals would remove the requirement to deduct mortgage servicing assets from regulatory capital while maintaining the 250 percent risk weight assigned to these assets.

Second, the proposals would also consider increasing the risk sensitivity of capital requirements for mortgage loans on bank books.

"These potential changes would address legitimate concerns about mortgage market structure while maintaining appropriate.

prudential safeguards," Bowman said.

(RADIOCOR) 16-02-26 15:46:47 (0363) 5 NNNN