Skip to content
Subscriber Only

Eased Mortgage-Risk Regulation to Be Proposed by U.S. Agencies

An eased version of a rule requiring lenders to keep a stake in risky mortgages that they securitize, a restriction designed to discourage the kind of lax underwriting that contributed subprime credit crisis, is set to be proposed by U.S. regulators tomorrow.

The 500-page draft regulation written by a panel of six agencies will replace a more stringent proposal for the Qualified Residential Mortgage rule. The first version, which was released in 2011, drew protests from housing industry participants and consumer groups who said it would be too restrictive of home lending.