Regulatory Alerts2013-09-20 | 2013-21677Added
Credit Risk Retention
The OCC, Federal Reserve, FDIC, SEC, FHFA, and HUD issued a joint proposed rule to revise their April 2011 proposal and implement credit risk retention requirements under Section 15G of the Securities Exchange Act of 1934. The rule generally mandates that securitizers retain not less than 5 percent of the credit risk of assets collateralizing asset-backed securities, while providing specific exemptions for qualified residential mortgages and other categories. Public comments on the proposed modifications are solicited to finalize the regulatory framework governing these retention obligations.
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