SEC, Othey Key Agencies Approve Credit Risk Retention Rule

Six federal agencies have adopted a final rule requiring banks to keep a stake in the mortgages they package and sell. The rule also provides a safe harbor for lenders to operate to determine who should receive loans.

Approval from six agencies, Including SEC

The six regulators, including the SEC and FHFA, were required by the 2010 Dodd-Frank Wall Street financial reform law to implement the new rule. Overseen by the Treasury Department, the new “skin in the game” regulatory requirement was crafted and issued by the Federal Reserve, HUD, the FDIC, the Federal Housing Finance Agency, the Office of the Comptroller of the Currency and the SEC.