Regulators Weigh Changes to Risk-Retention Proposal Related to QRM, Premium Capture
February 8, 2013
Federal regulators suggest that a number of changes are under consideration for risk-retention requirements initially proposed in 2011. Two changes under consideration include a revision of the qualified residential mortgage definition and a possible alternative to the controversial proposed premium capture cash reserve account. Katherine Hsu, chief of the office of structured finance in the division of corporation finance at the Securities and Exchange Commission, said federal regulators are considering changing the proposed definition for QRMs due to the recent ability-to-repay rule from the Consumer Financial Protection Bureau that set requirements for qualified mortgages. The QRM standards cannot be any more broad than the QM standards. Speaking at the American Securitization Forums ASF 2013 conference last week in Las Vegas, Hsu also stressed...