Highlights of US Federal Regulators’ Risk Retention Re-Proposal

August 30, 2013

On August 28, 2013, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Department of Housing and Urban Development, Federal Housing Finance Agency, and Securities and Exchange Commission (the “Regulators”) issued a second notice of proposed rulemaking to implement the credit risk retention requirements in Section 941 of the Dodd-Frank Act. The re-proposal replaces the first notice of proposed rulemaking issued by the Regulators in 2011. The Dodd-Frank Act generally mandates that a securitizer retain at least 5% of the credit risk for the assets that are packaged in an asset-backed security issued by the securitizer, and requires the Regulators to draft rules to implement the requirement. Here are some highlights of the re-proposal.

Read "Highlights of U.S. Federal Regulators’ Risk Retention Re-Proposal".