Regulators Ease Proposed Rule On Mortgage Risk Retention

Law360, New York (August 28, 2013, 12:25 PM EDT) -- Responding to criticism from both industry and consumer advocates, financial regulators on Wednesday introduced a new proposal for requiring banks to hold a stake in mortgage securitizations that dials back some of the key requirements from an original 2011 version of the rule.

The new, proposed version of the Dodd-Frank Act-mandated risk retention rule approved by the Federal Deposit Insurance Corp. would still force banks to hold a 5 percent stake in mortgage-backed securities that contain home loans with a higher risk of default, but it...
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