Featured Product

    US Agencies Commence Review Under Credit Risk Retention Regulations

    December 20, 2019

    US Agencies (the Department of Housing and Urban Development or HUD, FDIC, FED, FHFA, OCC, and SEC) are providing notice of the commencement of the review of the definition of qualified residential mortgage, the exemption of community-focused residential mortgage, and the exemption for qualifying three-to-four unit residential mortgage loans, in each case as set forth in the Credit Risk Retention Regulations that have been adopted by the agencies. The credit risk retention regulations require FDIC, FED, OCC, and SEC, in consultation with the FHFA and HUD, to commence a review of the mentioned provisions of the credit risk retention regulations no later than December 24, 2019. Comments on the review must be received by February 03, 2020.

    In the Supplementary Information to the Credit Risk Retention Regulations, the agencies note that they were committing, in the final rule, to review the qualified residential mortgage definition at regular intervals to consider, among other things, changes in the mortgage and securitization market conditions and practices. This review might include the

    • Structure of securitizations
    • Relationship between, and roles undertaken by, the various transaction parties
    • Implications for investor protection and financial stability arising from the relationship between government-sponsored enterprise (GSE) markets and private-label markets
    • Trends in mortgage products in various markets and structures and how the qualified residential mortgage definition is affecting residential mortgage underwriting and securitization of residential mortgage loans under the evolving market conditions

    The Supplementary Information also states that the agencies would want the opportunity to consider the results of future reviews of, and any changes made to, the qualified mortgage definition by CFPB, any additional regulatory changes affecting securitization that are adopted by the agencies, as well as any changes to the structure and framework of the GSEs and those markets. The simultaneous review of the community focused lending exemption and the exemption for qualifying three-to-four unit residential mortgage loans will similarly allow the agencies to evaluate the advantages and disadvantages of these exemptions, as their respective markets evolve over time. The credit risk retention regulations have been codified under the following sections of the Code of Federal Regulations: 12 CFR part 43; 12 CFR part 244; 12 CFR part 373; 17 CFR part 246; 12 CFR part 1234; and 24 CFR part 267.

     

    Related Links

    Comment Due Date: February 03, 2019

    Keywords: Americas, US, Banking, Securities, Credit Risk, Credit Risk Retention, Qualified Residential Mortgage, Securitization, US Agencies

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425