Regulators Extend Comment Period For 'Skin In Game' Rule

Law360, New York (June 7, 2011, 2:52 PM EDT) -- Following a barrage of criticism, U.S. bank regulators on Tuesday extended by about two months the comment period for its proposal requiring financial institutions that package mortgage securities to retain some of the risk.

The proposal, which would mandate that issuers of securitized assets retain 5 percent of the credit risk of those assets, has received a great deal of criticism that a proposed exemption to the rule for so-called “qualified residential mortgages,” certain high-quality commercial loans and auto loans, was too strict and could result...
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