Joint Proposed Rule on Credit Risk Retention

The OCC, Fed, FDIC, SEC, FHFA, and HUD announced that they approved a notice of proposed rulemaking in accordance with Section 941 of the Dodd-Frank Act. The proposal would require that, unless a transaction is exempt, a securitization sponsor must retain a 5% economic interest in the credit risk of assets transferred to a securitization. Comments must be submitted by June 10. Proposed Rule.