Securitization industry zeroes in on Basel Endgame wish list

“The 10% credit conversion factor on unconditionally cancelable undrawn commitments might have a negative impact on mortgage warehousing,” said Matthew Bisanz, a partner at Mayer Brown specializing in financial services regulation. “This would create a capital charge for unused lines that the bank can cancel at any time. Given the thin margins on undrawn lines, banks will not want to take on that capital charge.”