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

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699