Federal agencies revise proposed rule on risk retention, removing controversial provisions

Six federal financial regulatory agencies (the OCC, the Federal Reserve Board, the FDIC, the FHFA, the SEC and the HUD) have issued a notice revising their previous 20 April 2011 proposed rule on risk retention in securitisation transactions.

The new proposed rule, issued on 28 August 2013, was jointly issued by the agencies, with the secretary of the Treasury as chairperson of the Financial Stability Oversight Council playing a co-ordinating role.

The proposed rule removes certain controversial provisions that were included in the previous rule. For example, the proposed rule removes the Premium Capture Cash Reserve Account concept, which required securitisers to retain funds in a separate account to cover certain losses on underlying loans. Also, securities issued where all underlying loans meet the definition of a Qualified Residential Mortgage (QRM) are exempt from risk retention requirements…

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

3 Noble Street
London
EC2V 7EE
UK
http://www.dlapiper.com

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 625 (International 50)

Jobs