Risk Retention and Residential Mortgages: Legislation, Regulation and Economics

April 01, 2011
The recently proposed risk retention rules under Dodd-Frank have the potential to have a significant impact on mortgage origination activity and mortgage securitization activity. The proposal is likely to draw significant comment regarding the appropriate definition of a Qualifying Residential Mortgage, the treatment of GSE securitizations and a possible separate category of favorably treated residential mortgages. The comment period for the proposal will end on June 10, 2011.