Federal regulators have issued their long-awaited revised qualified residential mortgage (QRM) proposal.  The proposal, which implements Section 941 of the Dodd-Frank Act, was issued jointly by the FDIC, Fed, OCC, SEC and, with respect to portions addressing residential mortgages, the FHFA and HUD (Agencies).  

Section 941 generally requires the retention by the sponsor of not less than 5% of the credit risk of assets that collateralize asset-backed securities (ABS). … Continue Reading