These new standards are expected to cap the amount of mortgage servicing rights that institutions can  BIS central bankers’ speeches  5  include in regulatory capital, which could lead institutions to seek to limit or reduce the amount of mortgage servicing rights they own.
This circumstance, in turn, could reduce the liquidity in the market for mortgage servicing rights and potentially drive their valuations down. Thus, the final design of servicer compensation along with servicing requirements will factor into the capital allocated to the mortgage business generally and to the relative tightness of credit standards.