U.S. Regulators Finalize Credit Risk Retention Rules

WestLegalEdcenter Webinar

01/08/2015 01:00 p.m. - 02:00 p.m. EST

Banking + Financial Services, Capital Markets, Financial Institutions + Financial Services, and Investment Management

Jerry R. Marlatt and Kenneth E. Kohler

Kenneth E. Kohler and Jerry R. Marlatt

Webinar

Download Presentation Materials

The Federal Deposit Insurance Corporation (the “FDIC”), the Federal Housing Finance Agency (the “FHFA”), and the Office of the Comptroller of the Currency (the “OCC”) each adopted a final rule (the “Final Rule”) implementing the credit risk retention requirements of section 941 of the Dodd-Frank Act for asset-backed securities (“ABS”). The risk retention rules were initially proposed by the Joint Regulators in March 2011 and re-proposed in August 2013 (the “Re-Proposal”). The Final Rule will become effective one year from the date of publication in the Federal Register for residential mortgage-backed securities (“RMBS”) and two years from the date of publication in the Federal Register for all other ABS. 

As required by the Dodd-Frank Act, the Final Rule generally requires securitizers in both public and private securitization transactions to retain not less than 5% of the credit risk of the assets collateralizing any ABS issuance. This webcast will address the key provisions of the Final Rule adopted by the FDIC, FHFA, and OCC, including:

  • How the Final Rule generally permits risk retention to be accomplished through one or a combination of methods;
  • Transaction-specific risk retention options;
  • Types of securitizations exempt from the from the Final Rule;
  • Exemptions from risk retention for Securitizers of RMBS; and
  • The restrictions on securitizers.

Email Disclaimer

Unsolicited e-mails and information sent to Morrison & Foerster will not be considered confidential, may be disclosed to others pursuant to our Privacy Policy, may not receive a response, and do not create an attorney-client relationship with Morrison & Foerster. If you are not already a client of Morrison & Foerster, do not include any confidential information in this message. Also, please note that our attorneys do not seek to practice law in any jurisdiction in which they are not properly authorized to do so.

©1996-2017 Morrison & Foerster LLP. All rights reserved.