Mortgage Lenders Get a Bit of a Reprieve as Feds Extend Comment Period for Risk-Retention Rule
June 9, 2011
Federal banking regulators extended the comment period for their controversial risk-retention proposal to Aug.1 after meeting with the American Bankers Association, the Mortgage Bankers Association, the National Association of Realtors and consumer groups last Thursday. The proposed rule generally would require sponsors of asset-backed securities to hold on to a minimum 5 percent of the credit risk of the assets underlying their securities. Among the most controversial aspects of the proposal is its...