New rules for banks would be the 'end of real-estate finance as we know it,' MBA says

• Basel III proposals would cripple commercial property financing, MBA CEO Bob Broeksmit said. 
• The proposed regulation would require banks to maintain more capital to protect against loan losses.
• "Basel III could be the end of bank real-estate finance as we know it," Broeksmit said. 

Proposed rules that would require bank lenders to maintain a thicker capital buffer to protect against losses will intensify ongoing real estate turmoil, the head of the Mortgage Bankers Association said this week. 

MBA CEO Bob Broeksmit slammed the proposal, saying that it threatens to hold back bank lending and stifle liquidity in the commercial property sector.