Housing Groups Urge Flexibility In Risk Retention Exemption for Qualified Residential Mortgages

摘要

Housing, mortgage finance, and consumer groups have cautioned federal agencies considering risk retention rules for mortgage securities not to adopt an "unduly narrow" definition for the qualified residential mortgage (QRM) exemption. Under Section 941 of the Dodd-Frank Act, issuers of asset-backed securities, including mortgage securities, generally must retain at least 5 percent of the risk of default.