Eased Mortgage-Risk Rule to Be Proposed by U.S. Agencies
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Regulators today proposed easing a measure to require lenders to keep a stake in mortgages that they securitize, an effort designed to discourage the kind of risky loans that contributed to the subprime credit crisis.
The 505-page draft regulation written by six agencies drops a requirement that lenders retain a stake in mortgages with down payments of less than 20 percent, which appeared in an earlier version of the measure known as the qualified residential mortgage rule. The first draft, released in 2011, drew protests from housing industry participants and consumer groups who said it would impede home lending.