Fed review of mortgage servicing risk-weight to help Western Alliance most

- By Joshua Walker
- 24 Feb 2026

Western Alliance would see the largest immediate benefit from adjustments to risk-weights and capital caps outlined by the Federal Reserve on February 16, Risk Quantum analysis shows.

Vice-chair for supervision Michelle Bowman outlined a proposal that would remove the cap on the amount of mortgage-servicing assets (MSAs) that can be included in Common Equity Tier 1 (CET1) capital. She said the

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