Credit Risk Retention
SEC Release No. 34-64148 March 30, 2011 Federal financial regulatory agencies published a proposal to implement the risk retention requirements of Exchange Act Section 15G (as added by Section 941 of Dodd-Frank) to require asset-backed securitizers to retain at least 5% of the credit risk of the assets collateralizing asset-backed securities. The statute contains a number of exemptions from this requirement, in particular for securities collateralized entirely by certain "qualified residential mortgages" (defined in the proposal). Comments on the proposal (which is nearly 400 pages) are due by June 10, 2011. Cross References SEC Press Release 2011-77 Exchange Act § 15G Dodd-Frank § 941 Statements of SEC Commissioners: Schapiro, Paredes, Aguilar