OCC Consults on Information Collection on Credit Risk Retention

This information collection request relates to 12 CFR part 43, which implements section 941(b) of the Dodd-Frank Act. Section 941(b) of the Dodd-Frank Act required OCC, FED, FDIC, SEC, and, in the case of the securitization of any residential mortgage asset, FHFA, and the Department of Housing and Urban Development (HUD) to issue rules that, subject to certain exemptions:

• Require a securitizer to retain not less than 5% of the credit risk of any asset that the securitizer, through the issuance of an asset-backed security, transfers, sells, or conveys to a third party
• Prohibit a securitizer from directly or indirectly hedging or otherwise transferring the credit risk that the securitizer is required to retain under the statute and implementing regulations

Part 43 sets forth permissible forms of risk retention for securitizations that involve issuance of asset-backed securities, as well as exemptions from the risk retention requirements, and contains requirements subject to the Paperwork Reduction Act. OCC issued a notice for 60 days of comment regarding this collection on January 29, 2018. No comments were received. Comments continue to be invited on:

• Whether the collection of information is necessary for the proper performance of the functions of OCC, including whether the information has practical utility
• The accuracy of OCC's estimate of the information collection burden
• Ways to enhance the quality, utility, and clarity of the information to be collected
• Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology
• Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information

Related Link: Federal Register Notice

Comment Due Date: May 25, 2016

Keywords: Americas, US, Banking, Credit Risk, Securitization, Residential Mortgage, Risk Retention, OCC