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, Corporate Finance | Capital Markets, Financial Institutions + Financial Services, and Investment Management

Kenneth E. Kohler

Kenneth E. Kohler


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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.

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